Amgen (AMGN) Stock Price, News & Analysis

Company Overview

Amgen Inc. is a multinational biopharmaceutical company headquartered in Thousand Oaks, California. Established in 1980 by William Bowes from Cetus Corporation and Winston Salser from UCLA, Amgen is now one of the world's largest independent biotechnology companies, with over 24,000 employees worldwide. The company's primary focus is on molecular biology and biochemistry, intending to provide healthcare solutions based on recombinant DNA technology.

Neulasta, one of Amgen's most prominent selling product lines, is used to prevent infections in patients undergoing cancer chemotherapy. Enbrel is another famous selling product line for Amgen, used in the treatment of rheumatoid arthritis and other autoimmune diseases. The company's other products have various applications in treating cancer, anemia, osteoporosis and other conditions.

Amgen has a rich history of strong leadership, with the appointment of several successful CEOs since its inception. Robert A. Bradway is the current CEO and was brought to Amgen in May 2012 following his predecessor's retirement. Bradway has led the company to new heights with strategic acquisitions and partnerships.

Amgen has made at least five major corporate acquisitions. In 2019, the company announced it would acquire Nuevolution AB and the Otezla drug program from Celgene and a 20.5% stake in the Beijing-based BeiGene for $2.7 billion. These acquisitions have strengthened Amgen's drug pipeline and provided new revenue streams for the company. In March 2021, Amgen announced its plans to acquire Five Prime Therapeutics and its lead research drug candidate, bemarituzumab, for $1.9 billion. It also agreed to acquire Rodeo Therapeutics for up to $720 million. These acquisitions are part of the company's ongoing efforts to expand its drug pipeline and bring new treatments to patients.

In 2012, Amgen faced legal issues when it pleaded guilty and agreed to pay $150 million in criminal penalties and $612 million in damages to resolve 11 related whistleblower complaints. Amgen has also faced criticism for lobbying for a two-year extension on sales of drugs, including Sensipar, without government controls, which will cost taxpayers an estimated $500 million. However, the company remains committed to providing innovative and effective healthcare solutions for patients.

Amgen's success can be attributed to its commitment to innovation, strategic acquisitions, strong partnerships and top-end leadership. The company's impressive portfolio of products and its commitment to the community has solidified Amgen's position as a leader in biopharmaceuticals.

Written by Jeffrey Neal Johnson

Key Stats

• Today's Range: $262.21 to $269.61
• 50-Day Range: $258.78 to $325.28
• 52-Week Range: $253.30 to $346.85
• Volume: 13.50 million shs
• Average Volume: 2.69 million shs
• Market Capitalization: $141.58 billion
• P/E Ratio: 33.72
• Dividend Yield: 3.61%
• Price Target: $319.67
• Consensus Rating: Hold

Amgen Stock Analysis - MarketRank™

Amgen scored higher than 89% of companies evaluated by MarketBeat, and ranked 115th out of 944 stocks in the medical sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

Analyst's Opinion

• Score: 3.2 / 5
• Analyst Rating: Hold

Consensus Rating

Amgen has received a consensus rating of Hold. The company's average rating score is 2.40, and is based on 10 buy ratings, 12 hold ratings, and 2 sell ratings.

Amount of Analyst Coverage

Amgen has been the subject of 13 research reports in the past 90 days, demonstrating strong analyst interest in this stock.

Earnings and Valuation

• Score: 1.9 / 5
• Proj. Earnings Growth: 4.20%

Earnings Growth

Earnings for Amgen are expected to grow by 4.20% in the coming year, from $19.53 to $20.35 per share.

Price to Earnings Ratio vs. the Market

The P/E ratio of Amgen is 33.72, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 113.39.

Price to Earnings Ratio vs. Sector

The P/E ratio of Amgen is 33.72, which means that it is trading at a less expensive P/E ratio than the Medical sector average P/E ratio of about 90.13.

Price to Earnings Growth Ratio

Amgen has a PEG Ratio of 2.91. PEG Ratios above 1 indicate that a company could be overvalued.

Price to Book Value per Share Ratio

Amgen has a P/B Ratio of 22.61. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

Short Interest

• Score: 2.0 / 5
• Short Interest Level: Bearish

Percentage of Shares Shorted

2.08% of the float of Amgen has been sold short.

Short Interest Ratio / Days to Cover

Amgen has a short interest ratio ("days to cover") of 4.

Change versus previous month

Short interest in Amgen has recently increased by 13.56%, indicating that investor sentiment is decreasing significantly.

Dividend

• Score: 1.7 / 5
• Dividend Strength: Weak

Dividend Yield

Amgen pays a meaningful dividend of 3.38%, higher than the bottom 25% of all stocks that pay dividends.

Dividend Growth

Amgen does not have a long track record of dividend growth.

Dividend Coverage

The dividend payout ratio of Amgen is 121.90%. Payout ratios above 75% are not desirable because they may not be sustainable.

Dividend Sustainability

Based on earnings estimates, Amgen will have a dividend payout ratio of 46.78% next year. This indicates that Amgen will be able to sustain or increase its dividend.

Sustainability and ESG

• Score: 3.9 / 5
• Environmental Score: -2.42

Percentage of Shares Shorted

2.08% of the float of Amgen has been sold short.

Short Interest Ratio / Days to Cover

Amgen has a short interest ratio ("days to cover") of 4.

Change versus previous month

Short interest in Amgen has recently increased by 13.56%, indicating that investor sentiment is decreasing significantly.

News and Social Media

• Score: 2.4 / 5
• News Sentiment: 0.40

News Sentiment

Amgen has a news sentiment score of 0.40. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 (good news) to -2 (bad news). This is a lower news sentiment than the 0.60 average news sentiment score of Medical companies.

News Coverage This Week

MarketBeat has tracked 13 news articles for Amgen this week, compared to 23 articles on an average week.

Search Interest

71 people have searched for AMGN on MarketBeat in the last 30 days. This is an increase of 45% compared to the previous 30 days.

MarketBeat Follows

34 people have added Amgen to their MarketBeat watchlist in the last 30 days. This is an increase of 55% compared to the previous 30 days.

Company Ownership

• Score: 1.7 / 5
• Insider Trading: N/A

Insider Buying vs. Insider Selling

In the past three months, Amgen insiders have not sold or bought any company stock.

Percentage Held by Insiders

Only 0.69% of the stock of Amgen is held by insiders.

Percentage Held by Institutions

76.50% of the stock of Amgen is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

AMGN Stock Analysis - Frequently Asked Questions

How have AMGN shares performed this year?

Amgen's stock was trading at $288.02 at the beginning of the year. Since then, AMGN shares have decreased by 8.6% and is now trading at $263.38.
View the best growth stocks for 2024 here.

How were Amgen's earnings last quarter?

Amgen Inc. (NASDAQ:AMGN) posted its earnings results on Wednesday, October, 30th. The medical research company reported $5.58 earnings per share (EPS) for the quarter, beating the consensus estimate of $5.11 by $0.47. The company's revenue was up 23.2% on a year-over-year basis.
Read the conference call transcript.

Does Amgen have any subsidiaries?

Amgen subsidiaries include these companies: TeneoBio, Five Prime Therapeutics, Rodeo Therapeutics, Otezla, Nuevolution, Catherex, Catherex, and others.

Who are Amgen's major shareholders?

Top institutional investors of Amgen include State Street Corp (5.45%), Primecap Management Co. CA (2.65%), Geode Capital Management LLC (2.26%) and Charles Schwab Investment Management Inc. (1.96%). Insiders that own company stock include Amgen Inc, Murdo Gordon, Jonathan P Graham, Robert Eckert, Nancy A Grygiel, Nancy A Grygiel and R Sanders Williams.
View institutional ownership trends.

How do I buy shares of Amgen?

Shares of AMGN stock can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Charles Schwab, E*TRADE, Fidelity, and Vanguard Brokerage Services.
Compare Top Brokerages Here.

What other stocks do shareholders of Amgen own?

Based on aggregate information from My MarketBeat watchlists, some other companies that Amgen investors own include NVIDIA (NVDA), Meta Platforms (META), Chevron (CVX), Verizon Communications (VZ), Bristol-Myers Squibb (BMY), JPMorgan Chase & Co. (JPM) and Advanced Micro Devices (AMD).

Company Calendar

• Last Earnings: 10/30/2024
• Ex-Dividend for 12/9 Dividend: 11/18/2024
• Dividend Payable: 12/09/2024
• Today: 12/21/2024
• Fiscal Year End: 12/31/2024

Industry, Sector and Symbol

• Stock Exchange: NASDAQ
• Sector: Medical
• Industry: Biological products, except diagnostic
• Sub-Industry: Biotechnology
• Current Symbol: NASDAQ:AMGN
• CUSIP: 03116210
• CIK: 318154
• Web: www.amgen.com
• Phone: (805) 447-1000
• Fax: 805-447-1010
• Employees: 26,700
• Year Founded: 1980

Price Target and Rating

• Average Stock Price Target: $319.67
• High Stock Price Target: $405.00
• Low Stock Price Target: $195.00
• Potential Upside/Downside: +21.4%
• Consensus Rating: Hold
• Rating Score (0-4): 2.40
• Research Coverage: 25 Analysts

Profitability

• EPS (Most Recent Fiscal Year): $7.81
• Trailing P/E Ratio: 33.72
• Forward P/E Ratio: 13.49
• P/E Growth: 2.91
• Net Income: $6.72 billion
• Net Margins: 13.00%
• Pretax Margin: 14.38%
• Return on Equity: 168.35%
• Return on Assets: 11.18%

Debt

• Debt-to-Equity Ratio: 7.55
• Current Ratio: 1.32
• Quick Ratio: 0.96

Sales & Book Value

• Annual Sales: $32.53 billion
• Price / Sales: 4.35
• Cash Flow: $25.40 per share
• Price / Cash Flow: 10.37
• Book Value: $11.65 per share
• Price / Book: 22.61

Miscellaneous

• Outstanding Shares: 537,533,000
• Free Float: 533,824,000
• Market Cap: $141.58 billion
• Optionable: Optionable
• Beta: 0.55