Why Did Jefferies Give Viatris Inc (VTRS) Stock Buy Rating?

Jefferies has recently resumed Viatris Inc (VTRS) stock to Buy rating, as announced on July 19, 2024, according to Finviz. Earlier, on October 23, 2023, BofA Securities had reduced the stock from a Neutral to Underperform, setting a price target of $9 for VTRS stock. Barclays also reduced Underweight rating with a price target of $11. Additionally, Barclays reduced Equal Weight rating on April 24, 2023, with a target price of $11. BMO Capital Markets analysts, in their report published on February 17, 2023, also reduced Market Perform rating and set a price target of $16 for Viatris Inc’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.


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Viatris Inc (VTRS) Stock Trading Recap

On Wednesday, Viatris Inc (VTRS) stock saw a modest uptick, ending the day at $11.89 which represents a slight increase of $0.15 or 1.28% from the prior close of $11.74. The stock opened at $11.67 and touched a low of $11.65 during the day, reaching a high of $11.96. The volume of shares traded was 4.76 million falling short of the average volume of 7.80 million.

VTRS Stock Performance and Moving Averages

In recent trading, Viatris Inc (VTRS) stock price has shown some volatility, fluctuating 2.94% over the last five trades and 3.48% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by 2.24%, and it has plunged by -0.59% in the previous three months. Currently, VTRS is trading at 2.76%, 2.45%, and 3.11% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.

As of the latest trading close, VTRS, a Healthcare sector stock, is trading -12.69% below its 52-week high but remains 35.73% above its 52-week low. The Average True Range (ATR) (14 days) of 0.25 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.

Viatris Inc’s Profitability and Valuation Ratios

Viatris Inc’s profitability metrics reveal strong financial health. The company currently boasts an operating margin of 9.72% and a profit margin of -4.25%, with a gross margin of 2.24%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.

In terms of valuation, Viatris Inc’s market capitalization stands at $14.19 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The forward P/E ratio, which uses projected earnings for the next financial year, is 4.42. Additionally, the Price-to-Sales Ratio is 0.93, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 0.74, comparing the market value to the company’s book value.

Understanding Insider Trading

Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 2.05% of Viatris Inc (VTRS)’s shares, while financial institutions hold 81.68%.

Notable insider trades include Malik Rajiv, Director at Viatris Inc (VTRS), who sold 139681 shares on Sep 12 ’24, at $11.66 each, totaling $1.63 million. On Sep 12 ’24, Malik Rajiv, Director, sold 60319 shares for $11.71 each, amounting to $0.71 million. Additionally, on Aug 30 ’24, Malik Rajiv sold 50000 shares at $12 each, generating $0.60 million.

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