Pfizer (NYSE:PFE) Trading Up 0.2% - Is it Still a Buy?

Pfizer Inc. (NYSE:PFE) experienced a slight increase of 0.2% on Thursday, with shares reaching a high of $25.40 before closing at $25.29. During trading, around 7,229,555 shares exchanged hands, which represents a significant decline of 81% from the average daily trading volume of 38,378,047 shares. The stock had closed the previous day at $25.23.

Analyst Ratings

Several brokerages have recently provided their insights on Pfizer's performance. Wolfe Research began its coverage of the company, giving it an "underperform" rating and setting a target price of $25.00. In contrast, Daiwa Capital Markets upgraded Pfizer from a "neutral" to an "outperform" rating, increasing their target price from $28.00 to $34.00. Additionally, Citigroup issued a "neutral" rating with a target price of $30.00, while StockNews.com revised their rating from "strong-buy" to "buy". Overall, one analyst has a sell rating, eight hold ratings, six buy ratings, and two strong buy ratings for Pfizer. The average rating from analysts categorizes it as a "Moderate Buy" with a consensus target price of $32.92.

Stock Performance Overview

Currently, Pfizer holds a market capitalization of $144.39 billion and has a price-to-earnings ratio of 34.18. The company's PEG ratio stands at 0.69 and it features a beta of 0.65. Its 50-day simple moving average is $27.60, while the 200-day average is $28.42. Pfizer's financial indicators include a debt-to-equity ratio of 0.63, a quick ratio of 0.73, and a current ratio of 1.00.

Earnings Report

On October 29, Pfizer released its quarterly earnings report, revealing an EPS of $1.06, surpassing analysts' expectations of $0.64 by $0.42. The reported revenue for the quarter was $17.70 billion, significantly above the consensus estimate of $14.92 billion. The company enjoyed a net margin of 7.07% and a return on equity of 16.28%. Year-over-year, Pfizer's revenue saw a 31.2% increase from the previous year's quarterly revenue.

Dividends and Payouts

Furthermore, Pfizer recently announced a quarterly dividend of $0.42 per share, which was distributed on December 2 to shareholders recorded on November 8. This translates to an annualized dividend of $1.68, providing a robust dividend yield of 6.59%. The ex-dividend date was November 8, and currently, Pfizer's dividend payout ratio is at a high 227.03%.

Insider Activity

In related news, Director Scott Gottlieb recently purchased 1,000 shares of Pfizer at an average price of $28.24, totaling $28,240. Post-acquisition, he owns 10,000 shares valued at around $282,400—an increase of 11.11% in his stake in the company. This transaction was disclosed in an SEC filing.

Hedge Fund Movements

Recent changes in hedge fund positions also indicate a positive trend for Pfizer. OLD National Bancorp IN increased its holdings by 17.3%, now owning 323,900 shares valued at $9,063,000 after acquiring an additional 47,753 shares. Cambridge Advisors Inc. and Cliftonlarsonallen Wealth Advisors LLC also increased their stakes by 17.2% and 3.7%, respectively. Hedge funds and institutional investors collectively own 68.36% of Pfizer's stock, showcasing strong institutional interest.

About the Company

Pfizer Inc. is a biopharmaceutical company engaged in the discovery, development, manufacture, marketing, distribution, and sale of medicines and vaccines across the globe, particularly in the United States and Europe. The company operates in several therapeutic areas, producing notable products for cardiovascular health, infectious diseases, and most recently, COVID-19 vaccines and treatments.

Conclusion

With mixed analyst ratings, robust quarterly earnings, and ongoing interest from hedge funds, investors may want to consider if Pfizer remains a worthwhile investment. Current performance metrics and potential future growth make it a relevant player in the biopharmaceutical market.

Pfizer, Stock, Earnings