Investors who owned stocks in the 2010s generally experienced some big gains. In fact, the SPDR S&P 500's (NYSE: SPY) total return for the decade was 250.5%. But there’s no question some big-name stocks did much better than others along the way.
Allergan’s Big Decade
One stock that had plenty of highs and lows over the past decade is pharmaceutical giant Allergan plc (NYSE: AGN).
Allergan’s decade was defined by blockbuster deals and failed deals.
Today’s Allergan actually started the 2010s as Irish company Actavis. In 2015, Actavis acquired Allergan and re-domiciled it in Ireland as part of a tax inversion deal that helped Allergan avoid paying U.S. taxes. As part of the deal, Actavis took over Allergan’s name. Actavis was subsequently blocked by the U.S. Treasury in 2016 from repeating the same process in a $160-million merger deal with Pfizer, Inc. (NYSE: PFE).
Later that year, Allergan sold its generic drug business to Teva Pharmaceutical Industries Ltd (NYSE: TEVA) for $33.4 billion and 100.3 million shares of Teva stock.
Allergan (Actavis) started the 2010s trading at around $40 per share, but its Allergan acquisition helped propel it as high as $340.30 by mid-2015. Unfortunately, the stock never made another high, drifting steadily lower throughout the second half of the decade as drug makers faced increasingly intense scrutiny over pricing. In the past two years, Allergan has also faced intense legal and public backlash for its role in the U.S. opioid epidemic, which has weighed on the stock.
Allergan In 2020 And Beyond
Allergan reached a more than five-year low of $114.27 in mid-2019 before bouncing back a bit to close out the decade.
Even though it hasn’t made a new high in nearly five years, Allergan was still a strong performer in the 2010s. In fact, $100 worth of Allergan stock in 2010 would be worth $543 today, assuming reinvested dividends.
Looking ahead, analysts expect another difficult year for Allergan in 2020. The average price target among the 11 analysts covering the stock is $188, suggesting 4.7% downside from current levels.