Pfizer (NYSE:PFE) Shares Down 1.3% - Should You Sell?

Key Points

• Pfizer shares fell 1.3% to about $30.04 amid broader weakness in vaccine and biotechnology stocks, though the stock remains above its 50-day and 200-day moving averages.
• Analysts maintain a consensus “Hold” rating with an average price target of $28.72; five analysts rate it Buy, 14 Hold, and two Sell.
• Pfizer reported quarterly earnings and revenue above estimates and has several pipeline developments underway, but its 5.7% dividend yield and 226% payout ratio raise concerns about payout sustainability.

Pfizer Inc. (NYSE:PFE - Get Free Report)'s stock price traded down 1.3% during trading on Friday. The company traded as low as $29.81 and last traded at $30.0350. Approximately 29,374,521 shares changed hands during trading, a decline of 26% from the average session volume of 39,817,227 shares. The stock had previously closed at $30.42.

Trending Headlines about Pfizer

Here are the key news stories impacting Pfizer this week:

• Positive Sentiment: Pfizer signed a research collaboration and licensing agreement with Enodia Therapeutics focused on small-molecule Sec61 inhibitors. The deal gives Pfizer rights to discover, develop and potentially commercialize medicines from Enodia’s platform, adding potential value to Pfizer’s longer-term pipeline, although the programs remain early stage. Pfizer Signs New Drug Discovery Pact Focused on Sec61 Inhibitors
• Positive Sentiment: Pfizer completed a Phase 1 study for PF-07999415, providing an initial development milestone and additional information about the potential of its pipeline. However, the update does not yet establish efficacy or commercial prospects. Pfizer PF-07999415 Phase 1 Update
• Neutral Sentiment: New real-world data from Sweden’s Ibrance registry study could offer useful evidence about the drug’s performance in routine care. The report is potentially supportive for Pfizer’s oncology franchise, but the available information does not indicate a material change to near-term earnings. Pfizer Swedish Ibrance Study
• Neutral Sentiment: Pfizer’s roughly 5.7% dividend yield remains a major attraction for income investors and compares favorably with Merck’s. Analysts caution, however, that the high yield may reflect concerns about earnings and payout coverage rather than simply superior shareholder returns. Pfizer Dividend Yield Compared With Merck
• Negative Sentiment: Pfizer was swept into a selloff affecting Moderna and Merck after melanoma-vaccine results failed to meet the market’s very high expectations. Although Pfizer is not the primary company involved, the episode weakened sentiment across vaccine and biotechnology stocks. Melanoma Vaccine Selloff Spills Into Pfizer
• Negative Sentiment: Comparisons with Bristol Myers Squibb highlight Pfizer’s more uneven recent revenue performance, including year-over-year declines in several quarters. Higher interest rates may also reduce the appeal of high-yield stocks if safer fixed-income alternatives become more attractive. Bristol Myers Squibb Versus Pfizer Revenue Comparison

Wall Street Analysts Forecast Growth

PFE has been the subject of a number of research reports. Bank of America dropped their price objective on Pfizer from $27.00 to $26.00 and set a "neutral" rating for the company in a research note on Friday, July 10th. Cantor Fitzgerald increased their target price on Pfizer from $27.00 to $28.00 and gave the stock a "neutral" rating in a research note on Thursday, October 8th. Weiss Ratings upgraded Pfizer from a "hold (c-)" rating to a "hold (c)" rating in a report on Monday, August 31st. JPMorgan Chase & Co. lifted their target price on Pfizer from $28.00 to $30.00 and gave the company a "neutral" rating in a research report on Friday, October 9th. Finally, Scotiabank boosted their price target on shares of Pfizer from $30.00 to $33.00 and gave the stock an "outperform" rating in a research note on Tuesday, October 6th. Five investment analysts have rated the stock with a Buy rating, fourteen have issued a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Hold" and an average price target of $28.72.

Pfizer Price Performance

The company's 50-day simple moving average is $28.26 and its 200 day simple moving average is $26.61. The company has a market cap of $171.19 billion, a PE ratio of 39.52, a PEG ratio of 2.03 and a beta of 0.32. The company has a debt-to-equity ratio of 0.71, a quick ratio of 0.96 and a current ratio of 1.27.

Pfizer (NYSE:PFE - Get Free Report) last posted its quarterly earnings data on Tuesday, August 4th. The biopharmaceutical company reported $0.77 earnings per share for the quarter, topping analysts' consensus estimates of $0.68 by $0.09. The business had revenue of $15.03 billion for the quarter, compared to analyst estimates of $14.40 billion. Pfizer had a return on equity of 19.63% and a net margin of 6.80%. The company's revenue was up 2.6% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.78 earnings per share. Pfizer has set its FY 2026 guidance at 2.800-3.000 EPS. On average, sell-side analysts predict that Pfizer Inc. will post 2.95 earnings per share for the current fiscal year.

Pfizer Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Monday, December 7th. Stockholders of record on Friday, November 6th will be paid a $0.43 dividend. This represents a $1.72 annualized dividend and a dividend yield of 5.7%. The ex-dividend date is Friday, November 6th. Pfizer's dividend payout ratio (DPR) is presently 226.32%.

Hedge Funds Weigh In On Pfizer

Institutional investors and hedge funds have recently made changes to their positions in the stock. BlackRock Inc. lifted its stake in Pfizer by 6.3% in the second quarter. BlackRock Inc. now owns 529,670,433 shares of the biopharmaceutical company's stock worth $12,754,464,000 after acquiring an additional 31,412,883 shares during the last quarter. State Street Corp grew its holdings in Pfizer by 1.8% during the 2nd quarter. State Street Corp now owns 307,090,897 shares of the biopharmaceutical company's stock worth $7,394,749,000 after acquiring an additional 5,501,032 shares in the last quarter. Bank of New York Mellon Corp increased its position in shares of Pfizer by 7.4% in the 2nd quarter. Bank of New York Mellon Corp now owns 57,879,546 shares of the biopharmaceutical company's stock valued at $1,393,739,000 after purchasing an additional 3,999,646 shares during the last quarter. Bank of America Corp DE purchased a new stake in shares of Pfizer in the 2nd quarter valued at approximately $1,049,602,000. Finally, Dimensional Fund Advisors LP raised its holdings in shares of Pfizer by 0.8% in the 1st quarter. Dimensional Fund Advisors LP now owns 36,422,799 shares of the biopharmaceutical company's stock valued at $1,022,606,000 after purchasing an additional 293,029 shares in the last quarter. 68.36% of the stock is owned by institutional investors and hedge funds.

About Pfizer

Pfizer Inc is a global biopharmaceutical company that discovers, develops, manufactures and commercializes prescription medicines and vaccines. Its research activities span areas including oncology, internal medicine, inflammation and immunology, hospital care, infectious diseases and rare diseases.

The company's portfolio includes medicines such as Eliquis, Ibrance, Prevnar and Vyndaqel, as well as vaccines including Comirnaty, Abrysvo and Prevnar. Pfizer also develops treatments through internal research, licensing agreements and collaborations with other pharmaceutical and biotechnology companies.

Founded in Brooklyn, New York, in 1849 by Charles Pfizer and Charles Erhart, Pfizer has grown into an international healthcare company serving patients and healthcare providers in markets around the world.

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