Scott Gottlieb, a director at Pfizer (PFE), recently bought 2,000 shares. The buy increased his holdings by 50 percent, and came to a total cost of $77,005.
This marks the first insider buy at the company over the past two years. Company executives have largely been sellers of shares, particularly at the executive vice president level. Some of those sales came from exercising stock options, although more than half did not.
Overall, company executives own 0.01 percent of shares.
The drugmaker was a winner during the race for a Covid vaccine, but over the past year shares have reverted lower with a 22 percent decline. They now trade near a 52-week low.
That’s about on par with the company’s 29 percent drop in revenue, and nearly 30 percent decline in earnings.
Action to take: Shares are going for about 12 times forward earnings, and may be worthwhile to buy at or under today’s prices for interested investors. At current prices, Pfizer pays a 4.3 percent dividend yield, and has room to grow it further.
For traders, shares continue to trend lower in the short-term. The September $35 puts, last going for about $0.88, offer mid-double-digit returns on a further decline from here. If shares start to trend higher, traders could profit from call option trades.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.