Handle With Care: Amgen Inc. (NASDAQ: AMGN)


    Capital Research & Management Co.. recently announced the acquisition of new stake in Amgen Inc. (NASDAQ:AMGN). The institutional investor has increased its shareholding in the Healthcare company by 0.76% to 33.36 million shares with purchase of 0.25 million shares. This fresh investment now brings its stake to 5.70% valued currently at $8.16 billion. In addition, BlackRock Fund Advisors raised its holdings by 1.85 million to 33.11 million shares. And SSgA Funds Management, Inc. has lifted its position by 0.21% or 55408.0 shares – to 26.26 million shares.

    With over 12.73 million Amgen Inc. (AMGN) shares trading Friday and a closing price of $253.12 on the day, the dollar volume was approximately $3.22 billion. The shares have shown a positive weekly performance of 6.51% and its price on 08/28/20 gained nearly 0.12%. Currently, there are 588.00M common shares owned by the public and among those 584.66M shares have been available to trade.

    An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 29 analysts who have offered their price forecasts for AMGN have a consensus price objective of $261.21. The analysts have set the share’s price value over the next 12 months at a high of $308.00 and a low of $185.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Amgen Inc. stock is 2.20 for the next 12 months. The average price target is 3.67% above its last price level and an upside to the estimated low will see the stock lose -36.82% over that period. But an upside of 17.82% will see the stock hit the forecast high price target while mean target price for the stock is $269.00.

    Insiders at the company have transacted a total of 99 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 46 of these insider trades were purchases, accounting for 312,461 shares. Insider sales of the common stock occurred on 53 occasions, with total insider shares sold totaling 207,398 shares.

    The top 3 mutual fund holders in Amgen Inc. are Vanguard Total Stock Market Index, Vanguard 500 Index Fund, and Vanguard PRIMECAP Fund. Vanguard Total Stock Market Index owns 16.72 million shares of the company’s stock, all valued at over $4.09 billion. The company sold 45801.0 shares recently to bring their total holdings to about 2.86% of the shares outstanding. Vanguard 500 Index Fund sold 73593.0 shares to see its total holdings shrink to 12.13 million shares valued at over $2.97 billion and representing 2.07% of the shares outstanding. Vanguard PRIMECAP Fund sold 96100.0 shares to bring its total holdings to over 10.43 million shares at a value of $2.55 billion. Vanguard PRIMECAP Fund now owns shares totaling to 1.78% of the shares outstanding.

    Shares of Amgen Inc. (NASDAQ: AMGN) opened at $253.40, up $0.59 from a prior closing price of $252.81. However, the script later closed the day at $253.12, up 0.12%. The company’s stock has a 5-day price change of 6.51% and 11.55% over the past three months. AMGN shares are trading 5.00% year to date (YTD), with the 12-month market performance up to 22.29% higher. It has a 12-month low price of $177.05 and touched a high of $264.97 over the same period. Currently, 12.73 million shares have been traded, compared to an average intraday trading volume of 2.48 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 4.55%, 3.11%, and 9.97% respectively.

    Institutional ownership of Amgen Inc. (NASDAQ: AMGN) shares accounts for 78.10% of the company’s 588.00M shares outstanding. Mutual fund holders own 31.93%, while other institutional holders and individual stakeholders account for 46.06% and 0.95% respectively.

    It has a market capitalization of $148.07B and a beta (3y monthly) value of 0.86. The stock’s trailing 12-month PE ratio is 20.68, while the earnings-per-share (ttm) stands at $12.24. The company has a PEG of 3.01 and a Quick Ratio of 1.80 with the debt-to-equity ratio at 3.21. Price movements for the stock have been influenced by the stock’s volatility, which stands at 2.67% over the week and 2.06% over the month.

    Analysts forecast that Amgen Inc. (AMGN) will achieve an EPS of $3.8 for the current quarter, $3.57 for the next quarter and $16.84 for 2021. The lowest estimate earnings-per-share for the quarter is $3.46 while analysts give the company a high EPS estimate of $4.18. Comparatively, EPS for the current quarter was $3.66 a year ago. Earnings per share for the fiscal year are expected to increase by 2.00%, and 6.85% over the next financial year. EPS should shrink at an annualized rate of 6.87% over the next five years, compared to 14.00% over the past 5-year period.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 29 brokerage firm advisors rate Amgen Inc. (AMGN) as a “Moderate Buy” at a consensus score of 2.20. Specifically, 14 Wall Street analysts polled rate the stock as a buy, while 11 of the 29 advise that investors “hold,” and 0 rated it as a “Sell.”

    Looking at the support for the AMGN, a number of firms have released research notes about the stock. Guggenheim stated their Neutral rating for the stock in a research note on April 15, 2020, with the firm’s price target at. Wolfe Research coverage for the Amgen Inc. (AMGN) stock in a research note released on March 31, 2020 offered a Peer Perform rating with a price target of. Raymond James was of a view on March 30, 2020 that the stock is Outperform, while BofA/Merrill gave the stock Buy rating on March 05, 2020, issuing a price target of $245- $250. Barclays on their part issued Equal Weight rating on February 27, 2020.


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