Insider Transactions: What They Mean for Investors in Bristol-Myers, Pfizer, and Centene
Investors often pay attention to insider buying activities as they can provide insights into a company’s long-term potential.
Insiders include company officers, directors, major shareholders (10% or more), or anyone with specific internal knowledge due to their close relationship with the firm. It’s important to understand that insiders generally hold their shares longer than typical investors, and their transactions are subject to strict regulations.
Recently, several large-cap companies — Bristol-Myers Squibb (BMY), Pfizer (PFE), and Centene (CNC) — have experienced notable insider activity. Let’s delve into these transactions to learn more.
Bristol-Myers Squibb Gaining Ground
Bristol-Myers Squibb is a top global biopharmaceutical company committed to developing treatments for serious illnesses like cancer, cardiovascular issues, and autoimmune disorders. Recently, an insider acquired approximately 1,800 BMY shares, totaling over $100,000. The stock has shown remarkable progress in the past three months, rising nearly 20%, influenced by positive quarterly results.
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Pfizer’s Positive Outlook
Pfizer, currently ranked #2 (Buy) by Zacks, is renowned for its research-driven approach to biopharmaceuticals. Rising demand for Paxlovid amidst a recent surge in COVID-19 cases bolstered better-than-expected earnings, aided by successful cost-reduction strategies. A director made a recent move, purchasing 1,000 PFE shares for around $28,000. Analysts are optimistic, projecting a rise in earnings to $2.88 per share this year, an increase from the $2.22 estimate made in early March.
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Centene’s CEO Makes a Significant Purchase
Centene is a diverse healthcare company primarily catering to government-sponsored healthcare programs. The CEO recently bought about 4,100 CNC shares, totaling just over $250,000. This year has been challenging for Centene, with shares down 21% and underperforming compared to the S&P 500 index. While the stock might not seem like an obvious buy, the CEO likely sees value in the company after the decline.
The stock appears relatively inexpensive, currently trading at an 8.4X forward 12-month earnings multiple, below its five-year median of 11.7X. Its PEG ratio stands at 0.8X, indicating both growth and value, reflected in its Style Score of ‘A’ for Value.
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Conclusion
Insider buying can offer valuable insight into a company’s future. However, these transactions may not predict short-term performance, given that insiders tend to hold their shares longer and are subject to numerous regulations.
Overall, the insider transactions at Bristol-Myers Squibb (BMY), Pfizer (PFE), and Centene (CNC) may suggest positive long-term implications for investors.
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Bristol Myers Squibb Company (BMY): Access Free Stock Analysis Report
Pfizer Inc. (PFE): View Free Stock Analysis Report
Centene Corporation (CNC): Get Free Stock Analysis Report
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