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.

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.

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.

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.

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.