Celgene Corporation (CELG) Shares Fall After Company Cuts 2015 Outlook


Today is a fresh start of sorts for Celgene Corporation (NASDAQ:CELG), as they have announced that Chief Operating Officer, Mark Alles will become the company’s new CEO starting this March 1. However, this also comes as the company has lowered their 2015 profit guidance which shows the dilution from its acquisition of Receptos Inc, and announced their projected 2016 numbers. Alles will replace Bob Hugin who had served as CEO of Celgene Corporation (NASDAQ:CELG) for about six years. Hugin will remain onboard as executive chairman.

Celgene Corporation (NASDAQ:CELG) expects to see adjusted per-share earnings for 2015 come in at around $4.71 compared to their previous estimate of between $4.75 and $4.85. The company also now expects $9.16 billion in product sales compared to previous estimates that were between $9 billion and $9.5 billion.

2016 projections see per share earnings of $5.50 to $5.70 which compares to the $5.68 number that analysts have been expecting, and $10.5 to $11 billion in net product sales, compared to analysts expectations of $11.14 billion.

Wall Street apparently were not please with this update.The stock is down 7.41% or $8.07 following the news, hitting $100.91 per share. About 12.84 million shares traded hands or 187.25% up from the average. CELG has declined 1.57% since June 5, 2015 and is downtrending. It has outperformed the S&P500 by 4.28%.

From a total of 9 analysts covering Celgene Corporation (NASDAQ:CELG) stock, 8 rate it a “Buy”, 0 a “Sell”, and 1 a “Hold”. This means that 89% of the ratings are positive. The highest target price is $190 while the lowest target price is $134. The mean of all analyst targets is $149.78 which is 48.43% above today’s ($100.91) stock price. Celgene Corporation was the topic of 15 analyst reports since July 21, 2015 according to the firm StockzIntelligence Inc. Wells Fargo maintained shares on December 4 with a “Outperform” rating. Cowen & Co maintained shares with a”Outperform” rating and a $150 target share price in their report from an August 12. UBS maintained CELG stock in a recent report from November 6 with a “Buy” rating. Finally, Raymond James initiated the stock with a “Strong-Buy” rating in a report they issued on a September 1.

The institutional sentiment increased to 0.99 in Q2 2015. It’s up 0.09, from 0.9 in 2015Q2. The ratio improved, as 69 funds sold all their Celgene Corporation shares they owned while 447 reduced their positions. 76 funds bought stakes while 434 increased their total positions. Institutions now own 636.33 million shares which is 3.02% more than the previous share count of 617.70 million in 2015Q2.

Oaktop Capital Management Ii L.P. holds 50.66% of its total portfolio in Celgene Corporation, equating to 2.09 million shares. Birchview Capital Lp owns 732,553 shares representing 44.79% of their total US portfolio. Moreover, Fcg Advisors Llc has 20.25% of their total portfolio invested in the company, equating to 366,782 shares. The New Jersey-based Selkirk Management Llc has a total of 17.39% of their portfolio invested in the stock. Obermeyer Wood Investment Counsel Lllp, a Colorado-based fund reported 1.09 million shares owned.

Since May 15, 2015, the stock had 0 buys, and 5 selling transactions for a total of $13.55 million in net activity. Kaplan Gilla sold 15,000 shares worth $1.84M. Casey Michael D sold 15,000 shares worth $1.83M. Daniel Thomas O sold 25,578 shares worth $3.35 million. Mario Ernest sold 19,442 shares worth $2.56 million. The insider Karsen Perry A sold 47,173 shares worth $5.42 million.

Celgene Corporation , together with its subsidiaries, is an integrated biopharmaceutical firm engaged primarily in the discovery, development and commercialization of therapies for the treatment of cancer and inflammatory diseases through gene and protein regulation. The company has a market cap of $85.29 billion. The Company’s primary commercial stage products include REVLIMID (lenalidomide), ABRAXANE, POMALYST/IMNOVID, VIDAZA, azacitidine for injection (generic version of VIDAZA), THALOMID (sold as THALOMID or Thalidomide Celgene outside the United States), OTEZLA (apremilast) and ISTODAX (romidepsin). It has 50.82 P/E ratio.