AstraZeneca plc Stock Price (AZN)

What are AstraZeneca plc stocks?

AZN stocks are the publicly traded shares of AstraZeneca plc. The patient-focused biopharmaceutical company develops and manufactures prescription medicines, primarily for the fields of oncology, biopharmaceuticals (including cardiovascular, renal & metabolism, and respiratory & immunology) and rare diseases. AstraZeneca plc is headquartered in Cambridge in the UK.

The company was formed in 1999 through the merger of Astra AB (Sweden) and Zeneca PLC (UK). AZN stock is found on the FTSE 100 Index and has a global market. AstraZeneca uses both internal and external technology via collaborations to support ongoing innovation and stay relevant. Recently, it has pursued projects surrounding cancer treatment.

AZN stocks went public on the company's first day of trading in 1999, when it closed at a price of GBP 29.46. AstraZeneca stock is traded on the London, Stockholm and NASDAQ exchanges under the ticker symbol AZN.

Historical performance of AstraZeneca share prices

AstraZenenca has produced an array of successful drugs, resulting in steady performance on the stock market. One of the most famous examples came as a result of the COVID-19 pandemic. In January 2021, the UK became the first country in the world to administer the AstraZeneca COVID-19 vaccine, Vaxzevria.

In the lead-up, shares fluctuated as AstraZeneca raced against competitors Moderna and Pzifer. However, despite initially developing the vaccine on a not-for-profit basis, the company eventually chose to profit from the vaccine; after that, the publication of the company's 2021 results saw shares up 3%. Between 2020 and 2022, the share price grew 35%.

Research and development are highly valued by AstraZeneca, so much so that it spent $2.6 billion on R&D in the first quarter of 2023, which was 24% of its total revenue. The company has over 170 projects in its pipeline. These come as demand for the company's COVID-19 products is declining, showcasing promise for ongoing progression.

AstraZeneca has proven itself to be a reliable company for paying dividends, too. Currently, it pays out twice a year and, as of October 2023, the dividend yield sat at 2.24%, outperforming the S&P 500 index's 1.63%.

Reports show that, as of October 2023, the past 12 months saw the AZN stock gain 8.62%.

What affects the AstraZeneca share price?

AstraZeneca share prices can be dictated by several factors, including:

• Revenue: The company's strong revenue performance and continued investment across a diverse pipeline of projects have led to AZN stocks performing well. When forecasting for AstraZeneca stock, many traders value the company's steady financial performance – depending on their strategy, of course.
• Success of products: Few drugs in development make it to market, which can make people hesitant to invest in pharmaceuticals. However, AstraZeneca is an established company in this field with a strong product portfolio, including the non-small-cell lung cancer drug Tagrisso and the COVID-19 vaccine Vaxzevria, which were the top products based on revenue between 2021-2022.
• Demand for new drugs: The ageing population in countries such as the UK is generating an increasing demand for drugs related to cancer and rare diseases. Similarly, the pandemic, despite being an isolated event, generated an overwhelming demand for a vaccine to help save lives and AstraZeneca's commitment to delivering this saw the AZN stock price rocket.
• Competitors: The progress of competitors such as Moderna and Pfizer had a direct impact on the AstraZeneca stock price in the race to produce a COVID-19 vaccine. Other examples of competitors across the pharmaceutical industry include AbbVie, Sanofi, Novo and GSK, and the fortunes of any one might affect their rivals.
• Trial results: The development of drugs can be a long, sometimes arduous process with ups and downs. In July 2023, shares closed down 8% due to concerns about the success of a potential new lung cancer drug.
• Acquisitions: Acquisitions can cause the share price to rise or fall. After AstraZeneca acquired pharmaceutical company Alexion in a $39 billion deal in December 2020, shares fell by as much as 7% in one morning. However, the long-term exposure to rare disease assets could cause AZN shares to react differently in the future.

How to trade AstraZeneca stock

You have several choices when deciding how to trade with Tradu. Choose financial derivatives such as contracts for difference (CFDs) or spread bets if you don't want to take ownership of the underlying asset. This approach means you can speculate on the AZN share price going up or down.

Your other option is to invest in AstraZeneca plc stocks, where you can take full ownership of the asset.

Trading AstraZeneca stocks

• Contracts for difference (CFDs): Going for CFDs means you exchange the difference in AZN stock prices between the opening and closing of the contract. Your net profit is dependent on how far the price moved in the direction you predicted.
• Spread betting: Like CFDs, you won't own the AZN stock with this option. Instead, you speculate on whether prices will rise or fall, with profits or losses calculated per point of price movement.

Both approaches can be executed with leverage, which means you can increase your market exposure with a smaller deposit. Be aware, however, that this can amplify losses as well as profits.

The difference between CFDs and spread betting.

How to invest in AstraZeneca stock

Investing in AZN stocks works differently. You'll take ownership of the underlying asset and buy stock in the hope that the price will rise. If this happens, you could sell for a profit. Traders choose this approach if they want a long-term approach with less volatility.

Unlike with financial derivatives, you can't use leverage when trading stocks directly. It also comes with the potential downside that you can only profit from movement in one direction – a bear market offers few opportunities, for example.

Is trading AstraZeneca stock right for me?

Pros of trading AstraZeneca stock

There are multiple reasons why traders might decide to work with AstraZeneca plc stock, including the following:

• Global recognition: AstraZeneca stock features on leading indices like the S&P Global 100 and FTSE 100.
• News coverage: AstraZeneca is widely reported on by news outlets across the world, which means you're unlikely to miss an important update about AZN stock that can inform your decision-making.
• Trade options: Choose to invest directly or use leveraged CFDs to take advantage of both bull and bear markets.
• Volatility: The rise and fall of the AstraZeneca share price in recent years means there have been opportunities for short-term traders.

Cons of trading AstraZeneca stock

It's important to be aware of the risks involved when investing in or trading ASML stock. These include:

• Leverage risk: If you trade using leveraged CFDs or spread bets, there's a risk that losses could be magnified just the same as profits.
• Market volatility: Price fluctuations are hard to predict, even if you have thoroughly researched the price history of a particular stock.
• Narrow focus: If you only put funds towards AstraZeneca stock, you are more vulnerable to unexpected turns against you. Diversifying your interests spreads your risk more evenly and can lead to greater profit overall.

How to start trading AstraZeneca stock with Tradu

Start investing in or trading AstraZeneca stock with Tradu by following our simple process:

1. Set up your account: Register with us today and add funds to use when trading AstraZeneca plc stock.
2. Finalise your strategy: Decide whether to buy shares directly or use derivatives.
3. Study the market: Use our insightful technical analysis tools and live charts to track AstraZeneca share prices and performance to maximise your chances of success.
4. Execute a trade: Buy the stock directly or speculate on its price movements using CFDs or spread bets. You can use automated stop orders or monitor price movements manually.
5. Get support: We offer customer support 24/5 so you can tap into our expertise and enhance your trading experience.
6. Diversify your portfolio: Trade a variety of markets including indices, forex and commodities.