How to Buy AstraZeneca Stock in 2021
Do you think AstraZeneca stock is suitable for your investment strategy? If you have decided to invest in this company, you should go through the following sections to learn more about this process. The next sections discuss its business activity, revenue streams, and its viability as a long-term investment. After reading, you'll be equipped with the essential information so you can make an informed decision.
Learn How to Buy AstraZeneca Stocks in 3 Easy Steps
Find a Broker
The first step is to find the best broker for your needs. You should consider the terms and conditions, minimum deposit and learn everything about fees and commissions. The right broker will provide the means to trade AstraZeneca or any other stock on their platform. You also need to provide personal information to make an account on your chosen trading platform.
Analyse an AstraZeneca Chart
Brokers have a charting application that you can use to gauge AstraZeneca's share price movement and determine a price level to open your position. This will prove highly beneficial as you will be able to analyse any other company in case you decide to expand your portfolio. At this stage, you may want to check the broker’s educational section to help you interpret the data.
When you find your opportunity, the last step is to place your first trade and manage your position. As soon as you fund your new trading account, you will be able to buy or sell stocks and other financial assets via the same platform. Make sure you are aware of all the costs associated with trading, such as commissions, withdrawal fees, and others.
AstraZeneca Company Overview
People nowadays think of AstraZeneca as one of the coronavirus vaccine front-runners, but the company operates in a broader sector. For years, AstraZeneca has been a profitable distributor of cancer and immunology drugs. Let’s find out more about its business model, how it generates revenues and more.
AstraZeneca Business Model and Revenue Streams
The company develops and manufactures prescription medicines for major cardiovascular, renal, metabolism, respiratory, neuroscience, and gastroenterology diseases. In terms of revenue, AstraZeneca is among the top-selling pharmaceutical companies in the world, with $25.8 billion in sales and $26.6 billion in total revenue for 2020. A large portion came from product sales of its existing medicines and new medicine launches.
In 2020, the product sales grew by 10% to $25.89 billion. This is subdivided into the company's three main areas. For instance, its oncology product sales made up about 42% of the total revenue, reaching $10.85 billion. Its CVRM (cardiovascular, renal & metabolism) section produced $7 billion or 27%, and R&I (respiratory & immunology) category provided $5.35 billion or 21% of the total.
Its top product is Tagrisso, which is a medicine for treating lung carcinomas with specific mutations. Tagrisso’s sales totaled $4.3 billion for the company.
History of AstraZeneca
AstraZeneca plc has its roots in Södertälje, Sweden. It was founded in 1913 by 400 doctors and apothecaries and was originally Astra AB. In 1999, it merged with the British Zeneca Group and became AstraZeneca PLC. The main headquarters moved to London, and R&D headquarters remained in Sweden.
In 2000, the company launched Nexium (esomeprazole), a treatment for acid-related diseases. This drug generated about $14.4 billion for the company between 2001 and 2005.
In 2002, AstraZeneca's Iressa (gefitinib) was approved for the treatment of lung cancer in Japan. The company then made a massive acquisition in 2006 when it purchased Cambridge Antibody Technology (CAT) for £702 million. AstraZeneca later combined CAT with another firm it acquired, MedImmune LLC, purchased in 2007 for $15.2 billion.
From 2007 to 2012, the company made several other acquisitions, including another billion-dollar purchase of another biotechnology company, Ardea Biosciences. The deal was worth $1.2 billion at that time.
By 2015, the company became the 8th largest pharmaceutical company in the world by revenue. In 2020, AstraZeneca entered the COVID-19 vaccine efforts and reached phase 3 trials within the year.
Brokers That Offer AstraZeneca Shares
We've reviewed several brokers that offer AstraZeneca shares, and we find that the ones we listed below provide the best research tools and trading support that will help you achieve a great trading experience.
Should I Invest in AstraZeneca Stock?
The main reason for investing in AstraZeneca is that you are already purchasing a profitable company whose growth prospects are not conditioned by the success of its COVID-19 vaccine. However, this has been the cause of the recent surge in popularity. Investors should also consider the following aspects before deciding if the company is the right choice for their portfolios.
AstraZeneca Stock Investment Potential
AstraZeneca remains a profitable business with a net margin that swelled to 11.58% in 2020 from 5.47% the previous year; its EPS increased to $1.22 as a result. Analysts expect that its EPS can rise to $2 this year. The company also distributes regular dividends and has paid $1.86 per share annually; as of this writing, its dividend yield is 3.78%.
AstraZeneca's stock has been on the rise since the tail end of 2016, with an average annual growth rate of 10.24%. At its current stock price, analysts believe that it is at least 20% off its fair value. The highest price target for the company is approximately $175.
What Kinds of Investors Should Include AstraZeneca in Their Portfolios?
Investors searching for well-established, stable stocks may find that the company is a good investment opportunity. Its most recent developments offer reasons to be optimistic. For example, its breast cancer treatment, Enhertu, was approved in the U.S. and Europe in January. European regulators also approved a new dosing regimen for its lung cancer treatment, Imfinzi.
Similarly, other highly profitable existing products, including the Tagrisso drug and Lynparza that grew 31% and 42% respectively in Q4, make the backbone of a highly dependable diverse revenue stream.
How Much Should I Invest in AstraZeneca
Now that you already know about AstraZeneca's business and its investment potential, it'll be much easier for you to estimate how much you should invest in the stock. You can consider a few factors to help you decide. The amount of capital you can afford to invest may be a good starting point.
At the same time, you should also recall your investment objectives and factor in your age, risk profile, and investment horizon in your evaluation. All of these factors will enable you to form an accurate picture of the appropriate exposure or investment amount.
How to Buy Shares in AstraZeneca Stock?
There are two main options if you want to buy shares in AstraZeneca stock. Let’s find out more about how to invest via a brokerage firm or a Direct Stock Purchase Plan (DSPP).
Buy AstraZeneca Shares Using a Broker
As mentioned, you need to open a brokerage account to get started trading AstraZeneca shares. Brokers will need personal data to approve your account. It usually takes a few business days for your broker to accept your application.
Once your account is approved, you can now proceed with funding. Brokers have several deposit methods, including electronic bank deposits, wire transfers, check, and account transfers from another firm. The transfer time will depend upon the method you choose. For example, electronic bank transfers take only a few minutes.
Finally, when you see your deposit amount reflected in your trading account's balance, you're all set to place your first AstraZeneca trade. Choose whether to use a market order for quicker trade settlement, or set a limit order and wait for your desired price to match the stock price. You will also be able to use your new trading account to acquire other financial assets.
Buy AstraZeneca Shares With a Direct Stock Purchase Plan (DSPP)
One other way to invest in AstraZeneca shares is to access a Direct Stock Purchase Plan or DSPP. This method enables you to buy shares without a broker, and this is because you are purchasing shares directly from the company.
DSPPs will usually have setup fees, an initial investment amount, and sometimes a maximum amount to invest under the program. Also, it's important to note that for each company you want to invest in, you have to open a separate DSPP. However, not all companies have this program.
AstraZeneca offers a direct investment program. To be a part of it, you have to get in touch with the company's transfer agent to get started.
Frequently Asked Questions
AstraZeneca is one of the main companies producing COVID-19 vaccines. As a result, it may be a great investment opportunity if you want to invest in the healthcare industry.
AstraZeneca is a profitable company that has consistently reported net profits for several years. Its most recent net income for FY 2020 is $3.22 billion.
Yes, AstraZeneca's ample daily volatility and trading volume are both favorable. At the same time, it may be a great option for long-term investments, especially due to its regular dividend payouts.
The best platform for trading AstraZeneca should have a comprehensive set of analysis tools. Simultaneously, you should be able to use them with ease, so you can make quick trading decisions.
AstraZeneca follows the market hours of the exchanges where it is listed from. For instance, its stock on LSE is traded between 3 A.M. to 11 A.M. (ET).
AstraZeneca is listed on the London Stock Exchange (LSE) and NASDAQ. AstraZeneca Pharma India, a subsidiary of AstraZeneca PLC, on the other hand, is listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE).