Bristol-Myers Squibb Company (BMY) Could Go Up In Smoke?

Analysts at Citigroup cut their rating on shares of Bristol-Myers Squibb Company (NYSE:BMY) from Buy to Neutral in their opinion released on October 22. Analysts at Atlantic Equities issued an upgrade from Underweight to Neutral for the stock, in a research note that dated back to August 08.

By watching the trading activity of corporate insiders, it will become easier to get a sense of Bristol-Myers Squibb Company (NYSE:BMY)’s prospects. The earliest insider trade took place on 04/30/2018. Paliwal Dinesh C gathered a total of 4.77 thousand shares of company at average share price of $52.4. The total for the purchase was set at $249.95 thousand. After this transaction, the Director account balance stood at 8.03 thousand shares. The stock grew 1.62 percent since that insider purchase. On 12/15/2017, Samuels Theodore R. Ii, Director, purchased 4 thousand shares at a price per share of $62.3. This added 249.2 thousand shares to the insider’s fortune and the stock saw a -14.53 percent retreat in value since the news became public. This transaction left 22 thousand shares in the Director account. On 12/12/2017, EVP & Chief Scientific Officer Lynch Thomas J. Jr. performed a sale transaction worth $335.17 thousand. This sale at $63.24 each has eliminated 5.3 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -15.8 percent decrease since the transaction was reported. The insider now is left with 9.25 thousand shares remaining in the account. Leung Sandra, who performs the EVP, General Counsel job, sold 156.58 thousand shares for $9.92 million. The disposal occurred on 12/04/2017 was priced at $63.37 per share. The share price plunged -15.97 percent since the reporting date. Leung Sandra now left with a stake of 433.77 thousand BMY stock worth $23.1 million after the insider selling.

Bristol-Myers Squibb Company (BMY) is expected to jump by 12.56 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $70-month high price target. This represents a whopping 31.46 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $59, which represents a return potential of 10.8 percent when compared to the closing price of the stock of $53.25 on Thursday, December 06. The lowest price target for the stock is $47 — slightly more than -11.74 percent from BMY’s current share price.

The shares are currently floating around the first support level of $52.19. Below this, the next support is placed in the zone of $51.13. Till the time, the BMY stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 47.06 on daily chart, which may remain a cause for concern. If the price breaks below $51.13 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $53.78 mark may result into a pull-back move towards $54.31 level.

BMY shares accumulated 1.22 points or 2.34 percent on Thursday to $53.25 with a heavy trade volume of 11.186 million shares. After opening the session at $52.16, the shares went as high as $53.25 and as low as $51.66, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $86.9 billion and now has 1.63 billion shares outstanding. Bristol-Myers Squibb Company (BMY) stock has gained 2.34 percent of market value in 21 trading days.

BMY stock has a trailing 3-year beta of 1.1, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $2.67 a share in the trailing twelve months. The stock’s value has fallen -13.1 percent year to date (YTD) against a decline of -14.14 percent in 12 month’s time. The company’s shares still trade -23.98 percent away from its 1-year high of $70.05 and 13.44 percent up from 52-week low of $46.94. The average consensus rating on the company is 2.5, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

Shares of Bristol-Myers Squibb Company (BMY) are trading at a P/E ratio of 19.13 times earnings reported for the past 12 months. The industry BMY operates in has an average P/E of 29.45. Its P/E ratio went as low as 22.03X and as high as 73.8 over the 5-year span. Further, it is sporting a 3.94 on the Price-to-Sales ratio. Compare this with the industry average P/S of 19.89. 70.8 percent is the gross profit margin for Bristol-Myers Squibb Company and operating margin sits at 24.4 percent. Along with this, the net profit margin is 6.5 percent.

BMY will be showing off its Q4 earnings on January 24. Analysts are forecasting revenue to climb 9.8 percent to $5.98B in the next fiscal quarter, while earnings are seen soaring by nearly 23.53 percent to $0.84 per share. History has shown that shares in Bristol-Myers Squibb Company have gone down on 20 different earnings reaction days and are predicted to add 0.02 percent when the company reports upcoming earnings. In last reported earnings results, it earned $1.09 per share, better than the $0.91, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $5.69B, worse than the $5.72B analysts expected. Earnings are estimated to increase by -10.9 percent this year, 4.66 percent next year and continue to increase by 11.03 percent annually for the next 5 years.