PFE obtains $1 billion from activist investor Starboard Value. Stock gains on hopes of a plausible turnaround of the struggling pharma giant.
Pfizer's (PFE, Financial) stock experienced a boost on Monday, surging by 3 %, following the news that activist investor Starboard Value has acquired a substantial stake in the pharmaceutical giant. The investment, valued at approximately $1 billion, could regain investor confidence in Pfizer.
Pfizer's (PFE, Financial) stock saw an uptick after reports emerged that activist investor Starboard Value has invested $1 billion in the pharmaceutical giant. This development was positively received not only by equity investors but also by bondholders, as evidenced by a narrowing spread on the company's outstanding bonds.
Pfizer Inc.'s stock gained Monday after a report that activist investor Starboard Value has invested $1 billion in the drug company. Bondholders seem to like the news too.
As activist Starboard teams up with former Pfizer executives, the pharma giant's lack of focus is in the spotlight.
Pfizer (PFE) shares have gained ground since theThe Wall Street Journal reported over the weekend that activist investor Starboard Value has taken a roughly $1 billion stake in the drug maker and is pushing for changes at the company.
Pfizer, yielding 5.6%, is an Ultra SWAN bargain with upside potential in the next year. Despite $70 billion in debt, Pfizer's A- credit rating and stable cash flow ensure long-term stability and very strong dividend safety. Pfizer's growth outlook includes a 5% long-term growth rate, with a 10% to 11% long-term return potential.
Pfizer and its German partner BioNTech on Tuesday won their attempt to invalidate two of rival CureVac's patents at London's High Court.
Pfizer's stock has likely bottomed and shows strong technical and fundamental indicators, including a "Golden Cross" and robust cost reduction plans. The company's promising pipeline, including weight-loss treatments and AI-driven drug discovery, offers significant long-term upside potential. The Seagen acquisition enhances Pfizer's cancer treatment portfolio, positioning it well in a high-demand sector.
The drugmaker has cut costs already and has no coming product approvals or research that could offer a quick lift.
Starboard Value has taken a $1 billion stake in drugmaker Pfizer. The hedge fund, headed by Jeff Smith, has become one of the most feared activist investors.
Evan David Seigerman, BMO Biotech Analyst, joins 'Closing Bell Overtime' to talk Pfizer shares climbing on activist firm Starboard taking a stake in the company.