Michael Burry Stock Portfolio: 5 Stocks He Sold

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

Number of Hedge Fund Holders: 68  

Decline in Share Price Over Past Six Months: 1%  

Bristol-Myers Squibb Company (NYSE:BMY) discovers, develops, licenses manufactures, and markets pharmaceutical products worldwide. On October 31, Bristol Myers Squibb announced that their FDA-approved anaemia therapy, Reblozyl, which was developed in partnership with Merck, a multinational pharmaceutical company, reached the primary and key secondary endpoints in a phase three trial. Burry had bought a stake in the firm in the fourth quarter of 2021 but sold it off completely in the second quarter of 2022. 

On October 12, Barclays analyst Carter Gould maintained an Equal Weight rating on Bristol-Myers Squibb Company (NYSE:BMY) stock and lowered the price target to $66 from $69, noting that “another round of challenging setups is expected for biopharmaceuticals in third quarter due to COVID, currency and macro headwinds as well as mixed trends.

At the end of the third quarter of 2022, 68 hedge funds in the database of Insider Monkey held stakes worth $1.7 billion in Bristol-Myers Squibb Company (NYSE:BMY), compared to 69 in the preceding quarter worth $2.2 billion. 

In its Q3 2022 investor letter, RGA Investment Advisors, 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:

“Bristol-Myers Squibb Company (NYSE:BMY), which we referenced above, boasts a double-digit free cash flow yield that gets divided roughly equally between repurchases, a dividend and M&A in what is the best environment for acquisitions perhaps ever. In 2019, BMY acquired Celgene, which had one of the better corporate development programs in the industry. We view this as a great outlet for us as generalists considering a company like BMY should truly thrive with the ability to acquire outstanding assets and science at depressed valuations. We touched on the Turning Point acquisition above and we expect the company to be increasingly active in the M&A landscape. Importantly, Celgene also came to BMY with a phenomenal CAR-T platform. CAR-T is a cell therapy that activates the body’s immune system to target cancers. This will be a key growth vector alongside M&A in overcoming the company’s patent cliff.”