Amgen Inc. (NASDAQ:AMGN) achieved a significant milestone on Wednesday, reaching a new 52-week high of $346.38 during mid-day trading. The stock ultimately closed at $345.80, following a trading volume of 1,794,519 shares. This surge comes after the previous closing price of $338.36, reflecting a notable upward trend for the biotechnology company.
Analysts Provide Mixed Ratings
A number of research firms have recently shared their insights on Amgen’s stock performance. On November 25, Wells Fargo & Company set an ambitious target price of $400.00 for the company. Meanwhile, Deutsche Bank Aktiengesellschaft raised their price target from $280.00 to $285.00, maintaining a “hold” rating.
In contrast, Piper Sandler increased their price objective from $342.00 to $381.00, issuing an “overweight” rating. Bank of America also adjusted their target, raising it from $261.00 to $272.00, while assigning an “underperform” rating. The Goldman Sachs Group reaffirmed a “buy” rating on the stock, suggesting confidence in Amgen’s future performance.
The overall sentiment among analysts appears positive, with one investment analyst rating the stock as a Strong Buy, ten issuing Buy ratings, ten assigning a Hold rating, and one providing a Sell rating. According to data from MarketBeat, the average rating for Amgen stock is “Moderate Buy,” with an average price target of $335.65.
Strong Quarterly Earnings and Dividend Announcement
Amgen recently reported its quarterly earnings on November 4, revealing an earnings per share (EPS) of $5.64. This figure surpassed analysts’ consensus estimates of $5.01 by $0.63. The company also recorded a return on equity of 162.59% and a net margin of 19.47%. Revenue for the quarter reached $9.56 billion, exceeding the anticipated $8.98 billion. This marks a 12.4% increase in revenue compared to the same quarter last year.
In a significant move for investors, Amgen announced a quarterly dividend of $2.38 per share, payable on December 12. Stockholders of record as of November 21 will receive this dividend, which translates to an annualized dividend of $9.52 and a yield of 2.8%. The company’s dividend payout ratio stands at 73.57%, indicating a robust commitment to returning value to shareholders.
Insider Trading Activity and Hedge Fund Movements
Recent insider trading activity has also drawn attention. Nancy A. Grygiel, Senior Vice President, sold 3,139 shares on November 20 at an average price of $337.26, totaling approximately $1,058,659.14. Following the transaction, Grygiel retained 7,225 shares valued at around $2,436,703.50. This sale represented a 30.29% decrease in her holdings.
Additionally, Murdo Gordon, Executive Vice President, sold 6,879 shares on November 12 at an average price of $336.83, worth about $2,317,053.57. After this transaction, Gordon’s remaining shares totaled 41,923, valued at around $14,120,924.09, reflecting a 14.10% reduction in his position.
In terms of institutional involvement, recent reports indicate that hedge funds have been adjusting their stakes in Amgen. IFP Advisors Inc. increased its holdings by 8.6% during the third quarter, now owning 8,032 shares valued at $2,318,000. Swiss Life Asset Management Ltd. also boosted its stake by 2.3%, now holding 271,340 shares valued at $76,572,000.
Overall, institutional investors and hedge funds own 76.50% of Amgen’s stock, indicating strong confidence in the company’s future prospects.
Amgen continues to be a significant player in the biotechnology sector, driven by its innovative therapies and robust financial performance. As analysts remain optimistic and insiders adjust their positions, the company is poised for further developments in the coming months.
