Pfizer Stock Tumbles Despite Third-Quarter Beat, Exploring Sale of Hospital Drugs Unit

Pfizer Inc.’s stock has experienced a recent downturn despite the company’s third-quarter earnings exceeding expectations. The primary driver of this quarterly beat was the unexpected strong sales of its COVID-19 treatment, Paxlovid. However, this surge in sales did not translate into a positive stock performance, as Pfizer’s stock price tumbled following the earnings report[5].

Additionally, Pfizer is exploring the sale of its hospital drugs unit, known as Pfizer Hospital, which was formed after the acquisition of Hospira in 2015 for approximately $17 billion. The company has hired Goldman Sachs to gauge initial buyer interest in this potential sale[5].

From a technical analysis perspective, Pfizer’s stock is currently under pressure. The stock’s Relative Strength Index (RSI) is at 27.83, indicating a buy signal, but other indicators such as the Moving Averages Convergence Divergence (MACD) and the 50-day and 100-day exponential moving averages suggest a sell signal due to the stock price being below these averages[3].

Analysts have given Pfizer an average rating of “Moderate Buy” with a price target of $34.54, suggesting potential for stock price growth. However, there are also concerns about the company’s dividend payout ratio, debt-to-equity ratio, and the impact of its beta on market performance[4].

Pfizer’s financials show a stable 52-week range with a low of $25.20 and a high of $33.92. The company also announced a quarterly dividend of $0.42 per share, representing a yield of 5.73%, which can provide investors with a steady income stream[4][5].