Pfizer Stock Rises as Activist Investor Holds Back
Pfizer’s stock price surged 3% to $26.86 on Monday, following news that activist investor Starboard Value did not nominate any candidates for the company’s board before the January 25 deadline. This development brings temporary relief to Pfizer, which has been under pressure from Starboard’s criticism of its research and development investments and capital allocation decisions.
A Billion-Dollar Stake
Starboard took a $1 billion stake in Pfizer last year, citing concerns over the company’s performance. Despite this, Pfizer’s stock has plummeted 56.5% from its peak above $60 in late 2021. The stock is currently trapped between its 50-day and 200-day moving averages, according to MarketSurge.
CEO Under Fire
Pfizer’s Chief Executive Albert Bourla has faced significant criticism from Starboard, and during the J.P. Morgan Healthcare Conference in San Francisco, he acknowledged his dissatisfaction with the company’s performance in 2023. Bourla outlined five priorities to turn things around, including bolstering the pipeline, improving commercial performance, maximizing new products, and reducing costs.
Mixed Performance
While Bourla claimed that all the goals set for these priorities were achieved and exceeded, Pfizer’s stock has remained relatively unmoved. The company’s Relative Strength Rating stands at 24, indicating a poor 12-month performance compared to other stocks. Its Composite Rating of 50 puts its technical and fundamental performance in the middle of all stocks.
Industry Developments
Meanwhile, Moderna won an agreement for its Covid vaccines in Europe on Friday, but its stock reversed its early gains. The company’s performance is being closely watched, along with other players in the industry.
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