Can BeiGene Stock Rebound After A 10% Drop?

February 25th, 2021 by Trefis Team
BGNE: BeiGene logo
BGNE
BeiGene

The stock price of BeiGene (NASDAQ: BGNE), a biotechnology company focused on developing molecularly targeted and immuno-oncology drug candidates, has seen a 10% drop over the last ten trading days, while it’s down 6% over the last five trading days, but we believe the stock, after the recent correction, may trend higher in the near term. The recent drop appears to be profit taking at higher levels of around $380, which reflected a stellar 3x rally from the levels of $126 seen during the March 2020 lows. In fact, there have been some positive news flow around BGNE stock over the last few days. Firstly, the U.S. FDA has last week accepted the company’s application to review Brukinsa, a drug approved in 2020 for the treatment of mantle cell lymphoma, for the treatment of adult patients with Waldenström’s Macroglobulinemia (WM), a type of blood cancer. Also, some of the analysts have now revised their ratings upward for the BGNE stock.

Looking at the recent rally, the 10% drop for BGNE stock over the last ten days compares with 0.7% gains seen in the broader S&P 500 index. Now, is BGNE stock poised to gain further? It appears so. Given the current positives around Brukinsa, and based on our machine learning analysis of trends in the stock price over the last few years, we believe that there is a 65% chance of a rise in BGNE stock over the next month (twenty-one trading days). See our analysis on BeiGene Stock Chances of Rise for more details. Curious about the possibility of rising over the next quarter? Check out the BGNE Stock AI Dashboard: Chances Of Rise And Fall for a variety of scenarios on how BGNE stock could move.

Five Days: BGNE -6.3%, vs. S&P500 0.1%; Underperformed market

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(16% likelihood event)

  • BeiGene, stock declined 6.3% over a five-day trading period ending 2/24/2021, compared to the broader market (S&P500) rise of 0.1%
  • A change of -6.3% or more over five trading days is a 16% likelihood event, which has occurred 198 times out of 1256 in the last five years

Ten Days: BGNE -9.7%, vs. S&P500 0.7%; Underperformed market

(12% likelihood event)

  • BeiGene, stock declined 9.7% over the last ten trading days (2 weeks), compared to the broader market (S&P500) rise of 0.7%
  • A change of -9.7% or more over ten trading days is a 12% likelihood event, which has occurred 154 times out of 1240 in the last five years
While BGNE stock may gain more, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. For example, you’ll be surprised how counter-intuitive the stock valuation is for Abbott vs. Corcept.

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