Bristol-Myers Squibb (BMY), a leading biopharmaceutical company, experienced a significant decline in short interest during the month of August. The total number of shares borrowed by investors hoping to profit from a decrease in the stock’s price dropped by 18.2% from August 15th to August 31st. As of the end of August, there were 43,760,000 shares held for shorting purposes.
The decline in short interest can be attributed to several factors. First, research firms have recently issued mixed reports on Bristol-Myers Squibb’s performance and future prospects. While some firms have given positive ratings and price targets for the company’s stock, others have downgraded their recommendations. These conflicting opinions may have led investors to reconsider their bearish positions.
Additionally, Bristol-Myers Squibb recently announced its earnings results for the second quarter of 2023. The company reported earnings per share (EPS) of $1.75, falling short of the consensus estimate of $1.99 per share. Revenue for the quarter was also slightly lower than expected at $11.23 billion compared to an estimated $11.81 billion.
These disappointing financial results may have impacted market sentiment towards Bristol-Myers Squibb and influenced short sellers to close their positions or reduce their exposure.
Despite the decline in short interest, there are still some investors betting against the company with approximately 2.1% of its shares being sold short as of August 31st.
Looking ahead, analysts are projecting that Bristol-Myers Squibb will post EPS of 7.49 for the current year based on average estimates gathered from various sell-side analysts.
In terms of stock performance, Bristol-Myers Squibb opened trading at $59.03 on September 17th. Over the past twelve months, the stock has traded within a range of $58.86 to $81.43.
From a financial standpoint, Bristol-Myers Squibb has a quick ratio of 1.28 and a current ratio of 1.39, indicating the company’s ability to meet its short-term obligations. The debt-to-equity ratio stands at 1.08, suggesting an acceptable level of leverage.
With regards to shareholder activity, two company executives recently sold shares in Bristol-Myers Squibb. EVP Ann Powell sold 17,986 shares on August 24th at an average price of $61.25 per share, while EVP Robert M. Plenge sold 732 shares on August 3rd at an average price of $61.14 per share.
It is worth noting that these insider transactions were disclosed in legal filings with the Securities & Exchange Commission (SEC), reinforcing the company’s commitment to transparency and compliance with regulatory requirements.
In conclusion, despite experiencing a decline in short interest, Bristol-Myers Squibb remains subject to various market forces and analyst opinions that may impact its stock performance in the near future. Investors will continue to monitor the company’s financial results and strategic initiatives as they assess its potential for growth and value creation.
Updated on: 04/12/2023
Debt to equity ratio: Buy
Price to earnings ratio: Strong Buy
Price to book ratio: Strong Buy
DCF: Strong Buy
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Bristol-Myers Squibb’s Earnings Report: Assessing Financial Performance and Future Prospects
Bristol-Myers Squibb (BMY), a renowned biopharmaceutical company, recently released its earnings report for the second quarter of this year on July 27th. Unfortunately, the company fell short of analysts’ expectations with an earnings per share (EPS) of $1.75, compared to the consensus estimate of $1.99, indicating a difference of ($0.24).
During this quarter, Bristol-Myers Squibb generated revenue amounting to $11.23 billion, which was below the consensus estimate of $11.81 billion. This represents a decrease of 5.6% in revenue compared to the same period last year. The company’s net margin stood at 17.62%, proving that it continues to maintain a relatively healthy financial position despite these challenges.
In terms of return on equity (ROE), Bristol-Myers Squibb managed to achieve an impressive 50.51%. This indicates that the company has been successful in generating profits from shareholders’ investments.
Looking ahead, sell-side analysts are cautiously predicting that Bristol-Myers Squibb will post earnings per share (EPS) of 7.49 for the current year on average. While this forecasted EPS is reasonable considering the circumstances, it remains uncertain how external factors may impact the company’s performance in the coming months.
From an institutional investor perspective, various entities have recently engaged in transactions involving Bristol-Myers Squibb shares. Security Asset Management raised its stake in the biopharmaceutical firm by 20.3% during the first quarter and now owns approximately 9,230 shares valued at $640,000 after purchasing an additional 1,558 shares in the last quarter.
Another notable institutional investor is Richard P Slaughter Associates Inc., which increased its stake by 3.5% during the second quarter to reach around 22,040 shares valued at $1,409,000. Talbot Financial LLC also entered the scene during the fourth quarter, purchasing a new position in Bristol-Myers Squibb worth $4,482,000.
Among these investors, Ethic Inc. significantly raised its stake by 26.4% during the first quarter and currently owns 121,524 shares valued at $8,423,000 after acquiring an additional 25,385 shares.
Lastly, Atlas Wealth LLC entered the market during the fourth quarter and bought a new position in Bristol-Myers Squibb worth $276,000. Overall, approximately 74.98% of the company’s stock is owned by institutional investors – a significant portion that further demonstrates investor confidence in Bristol-Myers Squibb’s potential.
While Bristol-Myers Squibb’s recent earnings report may have disappointed some due to lower-than-expected earnings per share (EPS), it is important to bear in mind that the company continues to generate substantial revenue and maintain a healthy net margin. Additionally, its impressive return on equity (ROE) underscores its ability to deliver value for shareholders.
However, uncertainty still looms around the future performance of Bristol-Myers Squibb as external factors can impact any business. The forecasts provided by sell-side analysts serve as an informative guide but do not guarantee future outcomes. It will be intriguing to see how this company navigates the challenging landscape of the biopharmaceutical industry going forward.
As demonstrated through recent transactions made by institutional investors such as Security Asset Management and Richard P Slaughter Associates Inc., among others, there remains a level of confidence in Bristol-Myers Squibb’s long-term prospects. These investments reflect belief in the company’s ability to overcome short-term obstacles and deliver value to its shareholders in the future.
Overall, Bristol-Myers Squibb’s current financial situation presents both perplexity and curiosity for investors and industry experts alike. The company’s ability to adapt and overcome hurdles while driving growth will be crucial in determining its success moving forward.