Are Smart Investors Making the Right Decision? Amneal Pharmaceuticals Inc. (AMRX)

Amneal Pharmaceuticals Inc. (NYSE: AMRX) stock jumped 1.23% on Friday to $4.11 against a previous-day closing price of $4.06. With 1.23 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.16 million shares. During the session, the Drug Manufacturers – Specialty & Generic company that operates in wider Healthcare sector, reached to the highest price of $4.1300 whereas the lowest price it dropped to was $4.0300. The 52-week range on AMRX shows that it touched its highest point at $4.74 and its lowest point at $1.24 during that stretch. It currently has a 1-year price target of $5.25. Beta for the stock currently stands at 1.31.

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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 up-trending over the past week, with a rise of 9.02%, but this was up by 12.30% over a month. Three-month performance surged to 52.22% while six-month performance rose 204.44%. The stock gained 82.67% in the past year, while it has gained 106.53% so far this year. A look at the trailing 12-month EPS for AMRX yields -0.01 with Next year EPS estimates of 0.62. For the next quarter, that number is 0.11. This implies an EPS growth rate of -19.10% for this year and 11.37% for next year. EPS is expected to decline by -1.90% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 33.30%.

Float and Shares Shorts:

At present, 153.74 million AMRX shares are outstanding with a float of 124.92 million shares on hand for trading. On Aug 30, 2023, short shares totaled 3.62 million, which was 2.35% higher than short shares on Jul 30, 2023. 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 64.77% of AMRX’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 38.47% of AMRX, in contrast to 22.47% held by mutual funds. Shares owned by individuals account for 21.10%. As the largest shareholder in AMRX with 8.33% of the stake, The Vanguard Group, Inc. holds 12,841,038 shares worth 12,841,038. A second-largest stockholder of AMRX, BlackRock Fund Advisors, holds 7,224,433 shares, controlling over 4.68% of the firm’s shares. Eversept Partners LP is the third largest shareholder in AMRX, holding 5,265,251 shares or 3.42% stake. With a 2.59% stake in AMRX, the Vanguard Total Stock Market ETF 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 2.32% of AMRX stock, is the second-largest Mutual Fund holder. It holds 3,581,234 shares valued at 14.65 million. iShares Russell 2000 ETF holds 1.80% of the stake in AMRX, owning 2,777,502 shares worth 11.36 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2023, AMRX reported revenue of $559.36M and operating income of $51.32M. The EBITDA in the recently reported quarter was $58.26M and diluted EPS was -$0.80.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for AMRX since 0 analysts follow the stock currently. 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 $6.00 and a low target of $5.00, the average target price over the next 12 months is $5.25. Based on these targets, AMRX could surge 45.99% to reach the target high and rise by 21.65% to reach the target low. Reaching the average price target will result in a growth of 27.74% 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.

Summary of Insider Activity:

Insiders traded AMRX stock several times over the past three months with 2 Buys and 2 Sells. In these transactions, 78,044 shares were bought while 40,873 shares were sold. The number of buy transactions has increased to 22 while that of sell transactions has risen to 12 over the past year. The total number of shares bought during that period was 1,170,138 while 4,053,721 shares were sold.

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