Michael Burry is Selling These 5 Stocks

4. Bristol-Myers Squibb Company (NYSE:BMY)

Number of Hedge Fund Holders: 69  

Bristol-Myers Squibb Company (NYSE:BMY) manufactures and markets pharmaceutical products worldwide. The company has an impressive dividend profile. It has consistently paid a dividend to shareholders for the past thirty-two years. The sector median in this regard is just eleven years, attesting to the solidity of the business model of the firm compared to peers. These payouts have also registered uninterrupted growth in the past five years. On September 14, the firm declared a quarterly dividend of $0.54 per share, in line with previous. 

On September 12, BMO Capital analyst Evan Seigerman maintained an Outperform rating on Bristol-Myers Squibb Company (NYSE:BMY) stock and raised the price target to $94 from $92, noting that the commercial story on Sotyktu will take time to play out for the firm. 

At the end of the second quarter of 2022, 69 hedge funds in the database of Insider Monkey held stakes worth $2.2 billion in Bristol-Myers Squibb Company (NYSE:BMY), compared to 70 in the preceding quarter worth $2.4 billion. 

In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Bristol-Myers Squibb Company (NYSE:BMY) was one of them. Here is what the fund said:

“We established a position in Bristol-Myers Squibb Company (NYSE:BMY) , a global biopharmaceutical company focused on discovering, developing, and selling medicines for patients in the therapeutic areas of oncology, immunology, cardiovascular, and neurology. The stock trades at a low valuation relative to its current earnings because the company faces loss of exclusivity on several key drugs over the next eight years, including Revlimid, Eliquis, and Opdivo.

At the same time, Bristol-Myers has multiple new products in the early stages of launch (e.g., Opdualag, Camzyos, Breyanzi, and Reblozyl), a robust new product pipeline (e.g., Deucravacitinib, Milvexian, and CELMoD agents), and a strong balance sheet combined with strong free cash flow generation that the company can use for acquisitions. Management believes these growth drivers can more than offset the loss of exclusivity and drive revenue growth through the end of the decade. Given the company’s low valuation, if the company can execute, we think there is substantial upside in the stock.”