Bristol-Myers Squibb Company (NYSE: BMY) stock jumped 2.63% on Friday to $71.29 against a previous-day closing price of $69.46. With 9.99 million shares changed hands, the volume of the stock remained heavier than its average volume of 9.77 million shares. During the session, the Drug Manufacturers – General company that operates in wider Healthcare sector, reached to the highest price of $71.88 whereas the lowest price it dropped to was $69.20. The 52-week range on BMY shows that it touched its highest point at $80.59 and its lowest point at $53.22 during that stretch. It currently has a 1-year price target of $81.44. With its current market cap of 152.78 billion, BMY has annualized dividend of $2.16 while the current yield stands at 3.03%. Beta for the stock currently stands at 0.41.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of BMY was down-trending over the past week, with a drop of -0.68%, but this was down by -2.03% over a month. Three-month performance dropped to -8.24% while six-month performance fell -0.13%. The stock gained 18.52% in the past year, while it has gained 14.34% so far this year. A look at the trailing 12-month EPS for BMY yields 3.01 with Next year EPS estimates of 8.02. For the next quarter, that number is 1.84. This implies an EPS growth rate of 178.00% for this year and 6.79% for next year. EPS is expected to grow by 4.65% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 3.30%.
Float and Shares Shorts:
At present, 2.14 billion BMY shares are outstanding with a float of 2.13 billion shares on hand for trading. On Jul 14, 2022, short shares totaled 27.33 million, which was 1.28% higher than short shares on Jun 14, 2022. In addition to Dr. Giovanni Caforio M.D. as the firm’s Chairman & CEO, Mr. David V. Elkins serves as its Exec. VP & CFO.
Through their ownership of 78.94% of BMY’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 45.32% of BMY, in contrast to 33.98% held by mutual funds. Shares owned by individuals account for 0.35%. As the largest shareholder in BMY with 8.80% of the stake, The Vanguard Group, Inc. holds 187,936,711 shares worth 187,936,711. A second-largest stockholder of BMY, BlackRock Fund Advisors, holds 110,422,434 shares, controlling over 5.17% of the firm’s shares. SSgA Funds Management, Inc. is the third largest shareholder in BMY, holding 92,928,369 shares or 4.35% stake. With a 2.95% stake in BMY, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 63,019,984 shares are owned by the mutual fund manager. The Vanguard 500 Index Fund, which owns about 2.23% of BMY stock, is the second-largest Mutual Fund holder. It holds 47,514,815 shares valued at 3.2 billion. Vanguard Health Care Fund holds 1.08% of the stake in BMY, owning 23,066,775 shares worth 1.55 billion.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for BMY since 21 analysts follow the stock currently. There are 10 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 8 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 1 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With BMY analysts setting a high price target of $94.00 and a low target of $61.00, the average target price over the next 12 months is $81.18. Based on these targets, BMY could surge 31.86% to reach the target high and fall by -14.43% to reach the target low. Reaching the average price target will result in a growth of 13.87% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. BMY will report FY 2022 earnings on 02/02/2023. Analysts have provided yearly estimates in a range of $7.71 being high and $7.41 being low. For BMY, this leads to a yearly average estimate of $7.50. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Bristol-Myers Squibb Company surprised analysts by $0.16 when it reported $1.93 EPS against a consensus estimate of $1.77. The surprise factor in the prior quarter was $0.05. Based on analyst estimates, the high estimate for the next quarter is $1.95 and the low estimate is $1.76. The average estimate for the next quarter is thus $1.84.
Summary of Insider Activity:
Insiders traded BMY stock several times over the past three months with 2 Buys and 2 Sells. In these transactions, 11,241 shares were bought while 5,468 shares were sold. The number of buy transactions has increased to 81 while that of sell transactions has risen to 58 over the past year. The total number of shares bought during that period was 781,225 while 700,145 shares were sold.