Pfizer (NYSE:PFE) Trading 4% Higher on Better-Than-Expected Earnings

Key Points

• Pfizer's stock price rose 4% to $24.46 after the company reported better-than-expected earnings, with an EPS of $0.78 surpassing analyst estimates by $0.21.
• The biopharmaceutical company declared a quarterly dividend of $0.43 per share, resulting in an annualized dividend yield of 7.1%, despite a high payout ratio of 124.64%.
• Wall Street analysts have mixed ratings on Pfizer, with a consensus rating of "Moderate Buy" and a price target averaging $28.28 amid varying analysts' price projections.

Pfizer Inc. (NYSE:PFE - Get Free Report)'s share price was up 4% during mid-day trading on Tuesday following a better than expected earnings announcement. The stock traded as high as $24.79 and last traded at $24.46. Approximately 43,600,087 shares traded hands during trading, a decline of 4% from the average daily volume of 45,409,914 shares. The stock had previously closed at $23.53.

The biopharmaceutical company reported $0.78 EPS for the quarter, beating analysts' consensus estimates of $0.57 by $0.21. Pfizer had a return on equity of 20.33% and a net margin of 12.62%. The firm had revenue of $14.65 billion for the quarter, compared to analysts' expectations of $13.43 billion. During the same period last year, the firm earned $0.60 EPS. The company's quarterly revenue was up 10.3% on a year-over-year basis.

Pfizer Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, September 2nd. Stockholders of record on Friday, July 25th will be given a dividend of $0.43 per share. This represents a $1.72 annualized dividend and a dividend yield of 7.1%. The ex-dividend date of this dividend is Friday, July 25th. Pfizer's payout ratio is presently 124.64%.

Wall Street Analyst Weigh In

PFE has been the topic of a number of recent research reports. Leerink Partners cut their price objective on Pfizer from $28.00 to $26.00 and set a "market perform" rating on the stock in a research report on Wednesday, April 30th. HSBC cut their price objective on Pfizer from $27.00 to $26.00 and set a "buy" rating on the stock in a research report on Monday, May 19th. TD Cowen cut their price objective on Pfizer from $32.00 to $28.00 and set a "hold" rating on the stock in a research report on Tuesday, April 22nd. Redburn Atlantic cut their price objective on Pfizer from $29.00 to $27.00 and set a "neutral" rating on the stock in a research report on Wednesday, April 30th. Finally, Citigroup upped their price objective on Pfizer from $23.00 to $25.00 and gave the stock a "neutral" rating in a research report on Wednesday, April 30th. One research analyst has rated the stock with a sell rating, eleven have assigned a hold rating, six have given a buy rating and three have assigned a strong buy rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $28.28.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of the business. Capital Advisory Group Advisory Services LLC grew its position in Pfizer by 2.9% in the 2nd quarter. Capital Advisory Group Advisory Services LLC now owns 13,542 shares of the biopharmaceutical company's stock valued at $328,000 after acquiring an additional 388 shares in the last quarter. Citizens National Bank Trust Department grew its position in Pfizer by 0.9% in the 2nd quarter. Citizens National Bank Trust Department now owns 46,103 shares of the biopharmaceutical company's stock valued at $1,118,000 after acquiring an additional 395 shares in the last quarter. Trust Co of the South grew its position in Pfizer by 1.5% in the 2nd quarter. Trust Co of the South now owns 29,386 shares of the biopharmaceutical company's stock valued at $712,000 after acquiring an additional 441 shares in the last quarter. Charter Oak Capital Management LLC grew its position in Pfizer by 4.3% in the 2nd quarter. Charter Oak Capital Management LLC now owns 10,663 shares of the biopharmaceutical company's stock valued at $258,000 after acquiring an additional 444 shares in the last quarter. Finally, William B. Walkup & Associates Inc. grew its position in Pfizer by 1.2% in the 4th quarter. William B. Walkup & Associates Inc. now owns 39,368 shares of the biopharmaceutical company's stock valued at $1,044,000 after acquiring an additional 454 shares in the last quarter. Institutional investors own 68.36% of the company's stock.

Pfizer Stock Performance

The firm has a market capitalization of $138.31 billion, a price-to-earnings ratio of 17.66, a P/E/G ratio of 0.85 and a beta of 0.52. The company has a quick ratio of 0.96, a current ratio of 1.26 and a debt-to-equity ratio of 0.64. The stock has a 50-day moving average price of $24.37 and a 200 day moving average price of $24.53.

About Pfizer

Pfizer Inc discovers, develops, manufactures, markets, distributes, and sells biopharmaceutical products in the United States, Europe, and internationally. The company offers medicines and vaccines in various therapeutic areas, including cardiovascular metabolic, migraine, and women's health under the Eliquis, Nurtec ODT/Vydura, Zavzpret, and the Premarin family brands; infectious diseases with unmet medical needs under the Prevnar family, Abrysvo, Nimenrix, FSME/IMMUN-TicoVac, and Trumenba brands; and COVID-19 prevention and treatment, and potential future mRNA and antiviral products under the Comirnaty and Paxlovid brands.

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