Bristol Myers Squibb (NYSE:BMY) Shares Up 4% - What's Next?

Key Points

• Bristol Myers Squibb shares rose about 4% after positive Phase 3 results: RYZ101 improved progression-free survival in advanced neuroendocrine tumors, while lower-dose admilparant met its endpoint in idiopathic pulmonary fibrosis.
• The company is investing approximately $4.1 billion in radiopharmaceutical cancer drugs to diversify its pipeline and help offset future generic competition and patent-cliff pressures. However, the higher admilparant dose failed its endpoint, and third-quarter earnings may decline modestly.
• Analyst sentiment remains mixed: the consensus rating is “Hold” with an average price target of $64.88, while investors continue to view BMY’s roughly 4.3% dividend yield and low price-to-earnings ratio as supportive.

Bristol Myers Squibb Company (NYSE:BMY - Get Free Report)'s share price traded up 4% during mid-day trading on Wednesday. The company traded as high as $58.75 and last traded at $58.9130. Approximately 5,034,184 shares changed hands during trading, a decline of 58% from the average daily volume of 12,044,291 shares. The stock had previously closed at $56.67.

Key Stories Impacting Bristol Myers Squibb

Here are the key news stories impacting Bristol Myers Squibb this week:

• Positive Sentiment: Two Phase 3 successes strengthen the pipeline. BMY reported that RYZ101, a radiopharmaceutical treatment for advanced gastroenteropancreatic neuroendocrine tumors, improved progression-free survival in the ACTION-1 trial. The company also said admilparant met the primary endpoint at a lower dose in idiopathic pulmonary fibrosis, supporting discussions with regulators. Bristol Myers Squibb Announces Positive Topline Results from the Interim Analysis of Phase 3 ACTION-1
• Positive Sentiment: Investors see potential diversification ahead of a major patent cliff. BMY is making a roughly $4.1 billion investment in radiopharmaceutical cancer drugs, while the new trial data could help offset future pressure from generic competition to established products. Bristol Myers Stock Is Rising on a Double Dose of Good News
• Positive Sentiment: Income and valuation remain supportive. Financial articles continue to highlight BMY as a dividend payer that has maintained distributions through difficult industry conditions. Its approximately 13 price-to-earnings ratio may also appeal to value-oriented investors. Truist maintained a Buy rating. Truist Financial Sticks to Its Buy Rating for Bristol-Myers Squibb
• Neutral Sentiment: Analyst opinion is mixed. While Truist remains constructive, Wells Fargo lowered its price target from $65 to $60 and assigned an Equal Weight rating, implying limited upside from recent trading levels. Wells Fargo Lowers Bristol Myers Squibb Price Target
• Negative Sentiment: The lung-drug results were not uniformly positive. Only the lower admilparant dose met the primary endpoint, while the higher dose did not, creating uncertainty about the treatment’s prospects. Investors are also preparing for expectations that third-quarter earnings may decline by a single-digit percentage. Bristol Myers Dips on Confounding Lung Drug Results

Analyst Ratings Changes

BMY has been the subject of several recent research reports. Morgan Stanley reiterated an "underweight" rating and set a $41.00 target price (up from $40.00) on shares of Bristol Myers Squibb in a research report on Wednesday, October 7th. Argus upgraded Bristol Myers Squibb from a "hold" rating to a "buy" rating and set a $75.00 price target on the stock in a research report on Wednesday, August 5th. Jefferies Financial Group restated a "buy" rating and issued a $76.00 price target on shares of Bristol Myers Squibb in a research report on Monday. Bank of America decreased their price objective on Bristol Myers Squibb from $71.00 to $66.00 in a research note on Friday, October 9th. Finally, JPMorgan Chase & Co. upped their price objective on Bristol Myers Squibb from $67.00 to $73.00 and gave the company an "overweight" rating in a report on Friday, July 31st. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating, sixteen have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average price target of $64.88.

Bristol Myers Squibb Price Performance

The company has a current ratio of 1.53, a quick ratio of 1.38 and a debt-to-equity ratio of 1.89. The company's 50 day moving average is $63.81 and its 200-day moving average is $60.28. The firm has a market capitalization of $121.10 billion, a price-to-earnings ratio of 13.05, a P/E/G ratio of 0.28 and a beta of 0.19.

Bristol Myers Squibb (NYSE:BMY - Get Free Report) last released its quarterly earnings results on Thursday, July 30th. The biopharmaceutical company reported $2.04 earnings per share for the quarter, beating the consensus estimate of $1.60 by $0.44. Bristol Myers Squibb had a net margin of 18.87% and a return on equity of 66.90%. The firm had revenue of $12.97 billion for the quarter, compared to analysts' expectations of $11.74 billion. During the same period in the prior year, the firm earned $1.46 EPS. The business's revenue was up 5.7% on a year-over-year basis. Bristol Myers Squibb has set its FY 2026 guidance at 6.750-7.000 EPS. Equities research analysts anticipate that Bristol Myers Squibb Company will post 6.70 earnings per share for the current year.

Bristol Myers Squibb Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Monday, November 2nd. Investors of record on Friday, October 2nd will be given a dividend of $0.63 per share. This represents a $2.52 dividend on an annualized basis and a yield of 4.3%. The ex-dividend date is Friday, October 2nd. Bristol Myers Squibb's dividend payout ratio is currently 55.51%.

Insider Buying and Selling

In other news, SVP Phil M. Holzer sold 500 shares of the company's stock in a transaction that occurred on Tuesday, August 25th. The stock was sold at an average price of $67.50, for a total value of $33,750.00. Following the completion of the transaction, the senior vice president owned 16,862 shares of the company's stock, valued at $1,138,185. This represents a 2.88% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Corporate insiders own 0.05% of the company's stock.

Institutional Investors Weigh In On Bristol Myers Squibb

A number of institutional investors have recently modified their holdings of BMY. Lazard Asset Management LLC boosted its holdings in Bristol Myers Squibb by 23.7% during the 1st quarter. Lazard Asset Management LLC now owns 1,924,036 shares of the biopharmaceutical company's stock worth $116,693,000 after acquiring an additional 368,193 shares during the last quarter. Callan Family Office LLC bought a new stake in shares of Bristol Myers Squibb in the 2nd quarter worth $3,575,000. BlackRock Inc. raised its holdings in shares of Bristol Myers Squibb by 5.1% in the second quarter. BlackRock Inc. now owns 180,384,994 shares of the biopharmaceutical company's stock valued at $10,393,783,000 after purchasing an additional 8,702,106 shares during the last quarter. Asset One Wealth Management LLC purchased a new stake in shares of Bristol Myers Squibb in the fourth quarter valued at about $4,075,000. Finally, Saudi Central Bank grew its position in Bristol Myers Squibb by 90.2% in the 2nd quarter. Saudi Central Bank now owns 142,922 shares of the biopharmaceutical company's stock worth $8,235,000 after purchasing an additional 67,780 shares in the last quarter. 76.41% of the stock is owned by institutional investors.

About Bristol Myers Squibb

Bristol Myers Squibb NYSE: BMY is a global biopharmaceutical company that discovers, develops and commercializes prescription medicines. Its research and commercial activities focus primarily on oncology, hematology, immunology, cardiovascular disease and neuroscience. The company serves patients and healthcare providers in the United States and international markets.

Bristol Myers Squibb's portfolio includes medicines such as Opdivo and Yervoy for certain cancers, Eliquis for the prevention of blood clots and stroke, Revlimid and Pomalyst for blood cancers, and Abraxane for certain solid tumors.

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