5 Companies that Recently Raised Guidance

3. Biogen Inc. (NASDAQ:BIIB)

Number of Hedge Fund Holders: 61  

Biogen Inc. (NASDAQ:BIIB) develops therapies for the treatment of neurological and neurodegenerative diseases. In earnings results for the second quarter of 2022, posted on July 20, the company reported earnings per share of $5.25, beating estimates by $1.16. The revenue over the period was $2.5 billion, down close to 7% compared to the revenue over the same period last year but beating estimates by $110 million. The firm raised fiscal year 2022 revenue outlook to $10.1 billion against consensus estimates of $9.84 billion. 

On July 21, Truist analyst Robyn Karnauskas maintained a Buy rating on Biogen Inc. (NASDAQ:BIIB) stock and lowered the price target to $270 from $320, appreciating the prospects of the drug pipeline of the firm despite depression in base business volumes.

At the end of the first quarter of 2022, 61 hedge funds in the database of Insider Monkey held stakes worth $2.4 billion in Biogen Inc. (NASDAQ:BIIB), compared to 63 in the preceding quarter worth $2.3 billion. 

In its Q4 2021 investor letter, Longleaf Partners Fund highlighted a few stocks and Biogen Inc. (NASDAQ:BIIB) was one of them. Here is what the fund said:

“Biogen Inc. (NASDAQ:BIIB) (83%, 2.43%; 5%, 0.10%), a biotechnology company specializing in therapies for the treatment of neurological diseases, was a strong contributor before we exited the position in the first half. We began acquiring shares in January 2021, paying between 9- 11x FCF and a discount to our appraisal, even if the company’s promising drug pipeline turned out to be worth 0. After Biogen’s Alzheimer’s drug Aduhelm was approved in June, we quickly sold out after the stock’s price appreciated over 70% and briefly exceeded our appraisal of the value. We re-initiated a position in Biogen Inc. (NASDAQ:BIIB) in December at a price below our original cost basis from January. The stock became very cheap once again after Aduhelm’s early sales disappointed due to its high initial cost before management correctly cut the price. We think Biogen’s core Multiple sclerosis (MS) and Biosimilars businesses are strong enough to create sustainable double-digit EPS growth, even if Aduhelm and the entire Alzheimer’s program is worth zero. We also expect a board led by large shareholders to continue the company’s accretive repurchase, while considering other beneficial corporate actions.”