Does Amneal Pharmaceuticals Inc. (AMRX) offer a good opportunity for investors?

Amneal Pharmaceuticals Inc. (NYSE: AMRX) stock fell -4.42% on Friday to $3.46 against a previous-day closing price of $3.62. With 1.01 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.68 million shares. During the session, the Drug Manufacturers – Specialty & Generic company that operates in wider Healthcare sector, reached to the highest price of $3.7100 whereas the lowest price it dropped to was $3.4250. The 52-week range on AMRX shows that it touched its highest point at $5.99 and its lowest point at $2.90 during that stretch. It currently has a 1-year price target of $6.30. Beta for the stock currently stands at 1.19.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of AMRX was down-trending over the past week, with a drop of -3.62%, but this was up by 7.45% over a month. Three-month performance dropped to -7.24% while six-month performance fell -27.31%. The stock lost -28.36% in the past year, while it has lost -27.77% so far this year. A look at the trailing 12-month EPS for AMRX yields 0.01 with Next year EPS estimates of 0.92. For the next quarter, that number is 0.20. This implies an EPS growth rate of 155.00% for this year and 14.50% for next year. EPS is expected to decline by -12.10% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 15.00%.

Float and Shares Shorts:

At present, 149.89 million AMRX shares are outstanding with a float of 118.21 million shares on hand for trading. On Jul 14, 2022, short shares totaled 3.64 million, which was 2.41% higher than short shares on Jun 14, 2022. In addition to Mr. Chirag K. Patel as the firm’s Co-Founder, Co-CEO, Pres & Director, Mr. Chintu Patel R.Ph, R.Ph. serves as its Co-Founder, Co-CEO & Director.

Institutional Ownership:

Through their ownership of 68.06% of AMRX’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 38.67% of AMRX, in contrast to 21.58% held by mutual funds. Shares owned by individuals account for 20.73%. As the largest shareholder in AMRX with 8.32% of the stake, The Vanguard Group, Inc. holds 12,543,110 shares worth 12,543,110. A second-largest stockholder of AMRX, BlackRock Fund Advisors, holds 6,275,185 shares, controlling over 4.16% of the firm’s shares. Eversept Partners LP is the third largest shareholder in AMRX, holding 5,491,497 shares or 3.64% stake. With a 2.65% stake in AMRX, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 3,989,978 shares are owned by the mutual fund manager. The Vanguard Small Cap Index Fund, which owns about 2.31% of AMRX stock, is the second-largest Mutual Fund holder. It holds 3,476,571 shares valued at 11.06 million. Vanguard Small Cap Value Index Fu holds 1.50% of the stake in AMRX, owning 2,259,941 shares worth 7.19 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for AMRX since 7 analysts follow the stock currently. There are 3 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 2 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With AMRX analysts setting a high price target of $8.00 and a low target of $4.50, the average target price over the next 12 months is $6.10. Based on these targets, AMRX could surge 131.21% to reach the target high and rise by 30.06% to reach the target low. Reaching the average price target will result in a growth of 76.3% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. AMRX will report FY 2022 earnings on 03/01/2023. Analysts have provided yearly estimates in a range of $0.85 being high and $0.73 being low. For AMRX, this leads to a yearly average estimate of $0.80. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Amneal Pharmaceuticals Inc. surprised analysts by -$0.01 when it reported $0.12 EPS against a consensus estimate of $0.13. The surprise factor in the prior quarter was -$0.02. Based on analyst estimates, the high estimate for the next quarter is $0.21 and the low estimate is $0.18. The average estimate for the next quarter is thus $0.19.

Summary of Insider Activity:

Insiders traded AMRX stock several times over the past three months with 12 Buys and 4 Sells. In these transactions, 349,153 shares were bought while 23,725 shares were sold. The number of buy transactions has increased to 28 while that of sell transactions has risen to 15 over the past year. The total number of shares bought during that period was 1,042,091 while 114,135 shares were sold.

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