Active Stocks: Bristol-Myers Squibb Company [NYSE: BMY] will be an interesting stock to keep an eye on in the near future. Last week, one of the company’s directors bought about 11k worth of stock at $44.72. This follows a similar move by another director that bought 5000 of the company’s shares in May around $47. However, the latest buy could be considered a good sign considering that it happened at a time of heightened market uncertainty.
The past week saw significant market weakness, after President Trump escalated the trade war with tariffs on $300 billion worth of Chinese goods. This weakness is likely to continue this week, if global markets are anything to go by. The Chinese Yuan has started the week at 2008 lows against the dollar. This has pushed Asian stocks lower, and could negatively impact on U.S stocks as well. The Dow and the NASDAQ are already in red, and treasuries are rallying, signaling that investors are wary of the stock markets. In this environment of uncertainty, an insider buying a stock could be considered a good sign.
Going by its financials, BMY is doing well. The company recently announced its earnings, and they beat analyst expectations. It also offered positive guidance for the year, which is a plus. With these factors at play, BMY could show resilience, even in a situation where the market corrects. On the other hand, if the market absorbs the current uncertainty and begins to rise, BMY with its strong financials, and insider activity could be a potential stock to watch.
Currently, BMY it is trading at $45.99 and has a market cap of roughly $75 billion. The chart on BMY has been on a down trend over the past year and could be a potential stock to bounce in the near term once the markets turn bullish again.