Pfizer (PFE) stock rose 2.6% premarket Monday as investors reacted to multiple media reports that activist investor Starboard Value has taken a $1 billion stake in the pharmaceutical giant.
Starboard has approached Pfizer executives Ian Read and Frank D'Amelio about helping turn the tides at the drugmaker, various media outlets reported, citing unnamed sources. Pfizer, the manufacturer of the world's first-approved COVID-19 vaccine, has struggled to maintain its dominance post-pandemic. Read and D'Amelio expressed interest in assisting Starboard, The Wall Street Journal reported. Starboard's plans and the changes it would make at Pfizer are unclear.
The stock's moves early Monday morning will bring it into the positive for the year, but shares are far below record highs of nearly $60 in 2022.
Pfizer is set to report earnings on Oct. 29. Wall Street analysts expect the company to report revenues of $14.8 billion, up about 12% from the prior year. Only half of analysts covering the stock recommend buying it, according to Bloomberg data.