Amgen Inc. (NASDAQ: AMGN) stock jumped 1.47% on Friday to $227.75 against a previous-day closing price of $224.46. With 2.08 million shares changed hands, the volume of the stock remained lighter than its average volume of 2.72 million shares. During the session, the Drug Manufacturers – General company that operates in wider Healthcare sector, reached to the highest price of $229.37 whereas the lowest price it dropped to was $223.30. The 52-week range on AMGN shows that it touched its highest point at $258.45 and its lowest point at $198.64 during that stretch. It currently has a 1-year price target of $253.12. With its current market cap of 120.00 billion, AMGN has annualized dividend of $7.76 while the current yield stands at 3.41%. Beta for the stock currently stands at 0.57.
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 AMGN was up-trending over the past week, with a rise of 0.04%, but this was down by -6.84% over a month. Three-month performance dropped to -6.31% while six-month performance fell -2.75%. The stock gained 6.60% in the past year, while it has gained 1.24% so far this year. A look at the trailing 12-month EPS for AMGN yields 11.80 with Next year EPS estimates of 18.73. For the next quarter, that number is 4.43. This implies an EPS growth rate of -16.50% for this year and 7.52% for next year. EPS is expected to grow by 8.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 0.10%.
Float and Shares Shorts:
At present, 535.00 million AMGN shares are outstanding with a float of 533.66 million shares on hand for trading. On Jul 14, 2022, short shares totaled 17.33 million, which was 3.24% higher than short shares on Jun 14, 2022. In addition to Mr. Robert A. Bradway as the firm’s Chairman, CEO & Pres, Mr. Peter H. Griffith serves as its Exec. VP & CFO.
Through their ownership of 81.50% of AMGN’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 44.89% of AMGN, in contrast to 34.78% held by mutual funds. Shares owned by individuals account for 1.08%. As the largest shareholder in AMGN with 8.20% of the stake, The Vanguard Group, Inc. holds 43,868,903 shares worth 43,868,903. A second-largest stockholder of AMGN, SSgA Funds Management, Inc., holds 29,280,927 shares, controlling over 5.47% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in AMGN, holding 28,873,773 shares or 5.40% stake. With a 2.96% stake in AMGN, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 15,813,368 shares are owned by the mutual fund manager. The Vanguard 500 Index Fund, which owns about 2.23% of AMGN stock, is the second-largest Mutual Fund holder. It holds 11,921,923 shares valued at 2.86 billion. Vanguard PRIMECAP Fund holds 1.73% of the stake in AMGN, owning 9,257,685 shares worth 2.22 billion.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for AMGN since 27 analysts follow the stock currently. There are 6 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 19 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 2 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With AMGN analysts setting a high price target of $295.00 and a low target of $182.00, the average target price over the next 12 months is $249.05. Based on these targets, AMGN could surge 29.53% to reach the target high and fall by -20.09% to reach the target low. Reaching the average price target will result in a growth of 9.35% 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. AMGN will report FY 2022 earnings on 02/02/2023. Analysts have provided yearly estimates in a range of $17.93 being high and $17.05 being low. For AMGN, this leads to a yearly average estimate of $17.44. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Amgen Inc. surprised analysts by $0.22 when it reported $4.65 EPS against a consensus estimate of $4.43. The surprise factor in the prior quarter was $0.15. Based on analyst estimates, the high estimate for the next quarter is $4.95 and the low estimate is $4.00. The average estimate for the next quarter is thus $4.45.
Dividends & Yield:
In terms of dividends, AMGN has a current ratio of $7.76, which is $7.76 over the trailing 12-months, while a dividend of $5.96 is likely to be paid on average over the next five years. Dividend yield is another indicator that appeals to many investors, and AMGN currently yields $3.33. In the past year, AMGN’s dividend yield has been $3.33, but when looking at the stock over the past five years, its yield has been $2.8. Accordingly, AMGN has a current buyback yield of $7.29. This was $7.29 for the TTM, and it was $6.12 for the past five years.
Summary of Insider Activity:
Insiders traded AMGN stock several times over the past three months with 3 Buys and 6 Sells. In these transactions, 20,262 shares were bought while 15,437 shares were sold. The number of buy transactions has increased to 41 while that of sell transactions has risen to 50 over the past year. The total number of shares bought during that period was 146,679 while 96,495 shares were sold.