Daily Stock Analysis: Roche Holding AG

By Fredrik Arnold

Thursday, March 16, 2023 5:08 AM EST

Roche Holding AG bears the ticker symbol (RHHBY), and this is my second mention of RHHBY for this new Viking Portfolio. I previously mentioned RHHBY on November 18 and even selected it for some of my previous seven dog of the week folios.

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Roche is a Swiss biopharmaceutical and diagnostic company. The firm's best-selling pharmaceutical products include a variety of oncology therapies from acquired partner Genentech, and its diagnostics group was bolstered by the acquisition of Ventana in 2008. Oncology products account for 50% of pharmaceutical sales, and centralized and point-of-care diagnostics for more than half of diagnostic-related sales.

It has a research collaboration agreement with Synlogic, Inc. for the discovery of a novel synthetic biotic for the treatment of inflammatory bowel disease (IBD).

Roche Holding AG was founded in 1896 and is headquartered in Basel, Switzerland.

Three key data points gauge RHHBY or any dividend paying firm:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.

RHHBY Price

Roche Holding AG price per share was $35.96 at Wednesday’s market close. In the past year, RHHBY share price fell $11.30 or about 24%.

If Roche stock trades in the range of $30.00 to $50.00 this next year, its recent $35.96 share price might reach $41.00 by next year. That upside estimate of $7.04 is based on a little under half the median of price targets from 3 analysts tracking Roche for brokers.

RHHBY Dividend

Roche Holding AG most recent annual dividend of $1.29 casts a forward annual yield of 3.59%.

RHHBY Returns

Adding the $1.29 annual estimated

RHHBY dividend to about half the median price from 3 analysts, to the $7.04 one-year price upside estimate, reveals a $8.43 potential gross gain estimate per share.

At Wednesday’s $35.96 closing price, a little over $1000 would buy 28 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.36 per share.

Subtract that maybe $0.36 brokerage cost from my estimated $8.43 gross gain makes a net gain of $8.07 X 28 shares = $225.96 for a 22.5% net gain including the 3.59% annual dividend yield.

In the next year our $1K investment in shares of Roche Holdings AG should generate $35.90 in cash dividends. Furthermore, a single share of Roche at Friday’s $35.96 price is exactly $0.06 more than the estimated annual dividend income from a $1000.00 investment.

So, by my dogcatcher ideal, this is not quite the proper time to buy RHHBY shares, based on their dividends for 2023. The current dividend from $1K invested is $0.06 less than the Roche Holding AG single share price. Consider yourself alerted.

Wait for RHHBY price to drop below $35.90.

All of the estimates above are speculation based on the past history of investment in shares of Roche Holding AG. Only time and money invested in this stock will determine its future market value.

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Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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