Teva Shares Rose on May 15, Berkshire Increased Its Stake
Berkshire Hathaway increased its stake in Teva
On May 15 after the market closed, Berkshire Hathaway (BRKB) published its holdings at the end of the first quarter as of March 31. According to the company’s SEC filings, it holds 40.5 million Teva Pharmaceutical (TEVA) shares as of March 31—compared to 19 million shares added during the fourth quarter of 2017, according to Berkshire’s filings as of December 31, 2017. At the time, Teva stock rose more than 10% following the news.
The stock holdings as of March 30 represent Berkshire Hathaway’s ~3.5% stake in Teva. In after-hours trading on May 15, Teva stock jumped more than 5%. On May 15, Teva stock closed at a trading price of $20.30.
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Wall Street’s reaction
Teva has been going through troubled times with a sharp drop in sales and earnings. Teva faces intense competition from generics for its blockbuster drug Copaxone and intensified Ux generics competition. The company is recuperating from the dismal performance. Teva has put forth a restructuring plan that’s on track, according to the company—announced during its fiscal 1Q18 earnings on May 3.
According to a Reuters survey, ~23% or seven of the 31 analysts covering Teva recommend the stock as a “buy” as of May 16. Meanwhile, 51% or 16 analysts recommend a “hold” and 26% or eight of the analysts recommend a “sell.”
According to the analysts, Teva has a 12-month consensus target price of $18.82, which represents an investment return potential of -7.3% in the next 12 months.
Recently, Teva stock has been registering an increase due to a number of favorable events and the company’s restructuring efforts. In the past month, the stock has gained ~12.5%.
Next, we’ll discuss why Teva rose more than 4% on May 14.
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