NEW YORK – Bristol Myers (NYSE:) Squibb Co. (NYSE:BMY) experienced a downturn on Thursday, ending a two-day streak of gains as its shares dropped 1.42% to close at $50.84. The decline occurred in a mixed trading session where the broader S&P 500 Index saw a marginal increase of 0.12%, while the edged down by 0.13%.
The pharmaceutical giant’s stock concluded the trading day significantly below its 52-week high of $81.44 reached on December 1st, trailing behind competitors such as Johnson & Johnson and Abbott Laboratories (NYSE:), which climbed by 0.87% and 2.31%, respectively. In contrast, Pfizer Inc. (NYSE:)’s shares also experienced a slump, falling by 1.39%.
Notably, the trading volume for Bristol Myers Squibb was higher than usual, with approximately 14.5 million shares changing hands. This figure surpasses the company’s 50-day average volume of 12.8 million, indicating heightened investor activity.
According to InvestingPro, Bristol Myers Squibb is demonstrating high earnings quality, with free cash flow exceeding net income. This is a positive sign, as it indicates that the company’s operations are generating substantial cash. Furthermore, the company’s management has been aggressively buying back shares, which could be a signal of their confidence in the company’s future prospects.
InvestingPro data reveals that Bristol Myers Squibb has a relatively low P/E ratio of 12.72, suggesting that it may be undervalued compared to its earnings. In the last twelve months as of Q3 2023, the company generated revenue of 44.94B USD. Despite a slight downturn in revenue growth, the pharmaceutical giant maintains a hefty gross profit margin of 77.01%.
Investors should also note that Bristol Myers Squibb has a history of maintaining dividend payments, having done so for 53 consecutive years. With a current dividend yield of 4.48%, it offers an attractive income opportunity for dividend-focused investors.
For more insights, investors can access additional InvestingPro tips and real-time metrics on the InvestingPro platform, which offers a wealth of data on various companies, including Bristol Myers Squibb.
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