What Are The Risk Factors For Amgen Inc. (AMGN)?


As of Friday close, Amgen Inc.’s (NASDAQ:AMGN) stock was down -$4.78, moving down -2.04 percent to $229.79. The average number of shares traded per day over the past five days has been 3,921,720 shares. 1 time new highs have been achieved over the past 5 days, with a $1.92 gain in that time frame. In the last twenty days, the average volume was 2,666,515, while in the previous 50 days, it was 2,576,474.

Since last month, AMGN stock retreated -4.28%. Shares of the company fell to $225.40 on 03/09/23, the lowest level in the past month. A 52-week high of $296.67 was reached on 01/11/23 after having rallying from a 52-week low of $223.30. Since the beginning of this year, AMGN’s stock price has dropped by -12.51% or -$32.85, and marked a new high 5 times. However, the stock has declined by -22.54% since its 52-week high.

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AMGN stock investors should be aware that Amgen Inc. (AMGN) stock had its last reported insider trading activity 129 days ago on Nov 09. Khosla Rachna, the SVP, Business Development of the company, disposed of 387 shares for $292.90 on Nov 09. It resulted in a $113,352 divestment by the insider. Grygiel Nancy A. sold 545 shares at an average price of $293.54 on Nov 08. The insider now owns 13,009 shares following the transaction. On Aug 22, Director Williams R Sanders sold 200 shares at $249.96 apiece. The transaction was valued at $49,992.

Valuation Metrics

Right now, Amgen Inc. (AMGN) has a P/E ratio of about 18.96. The stock’s beta is 0.64. Besides these, the trailing price-to-sales (P/S) ratio of 4.62, the price-to-book (PB) ratio of 33.60, and the price-to-cash flow ratio of 26.49 may also be considered.

The latest dividend of $2.13 per share was paid out, remained unchanged from last year’s $2.13.

Financial Health

In the three months ended December 30, Amgen Inc.’s quick ratio stood at 1.10, while its current ratio was 1.40, showing that the company is able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending December 30 was 10.20, and the total debt-to-equity ratio was 10.64. On the profitability front, the trailing twelve-month gross margin is 75.70% percent. In the year ended December 30, operating margins totaled 36.60%. Based on annual data, AMGN earned $19.92 billion in gross profit and brought in $26.32 billion in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 20.60%. Return on equity (ROE) for the past 12 months was 246.10%.

In Amgen Inc.’s quarter-end financial report for December 30, it reported total debt of $37.35 billion against cash and short-term investments of $1.68 billion. According to the earnings report, the company had a higher net income in the recent quarter than it did in the previous quarter. AMGN’s revenue rose 1.31% during the quarter, while net income inched up to $26.32 billion. While analysts expected Amgen Inc. to report $4.09 quarterly earnings, the actual figure was $4.09 per share. During the quarter, the company generated $3.14 billion in EBITDA. The liabilities of Amgen Inc. were 61.46 billion at the end of its most recent quarter ended December 30, and its total debt was $38.95 billion. The value of shareholders’ equity is $533.98 million.

Technical Picture

This quick technical analysis looks at Amgen Inc.’s (AMGN) price momentum. With a historical volatility rate of 25.56%, the RSI 9-day stood at 41.76% on 17 March.

With respect to its five-day moving average, the current Amgen Inc. price is up by +0.84% percent or $1.92. At present, AMGN shares trade -1.89% below its 20-day simple moving average and -8.79% percent below its 100-day simple moving average. However, the stock is currently trading approximately -13.09% below its SMA50 and -10.50% below its SMA200.

Stochastic coefficient K was 64.76% and Stochastic coefficient D was 62.74%, while ATR was 5.10. Given the Stochastic reading of 36.98% for the 14-day period, the RSI (14) reading has been calculated as 40.16%. As of today, the MACD Oscillator reading stands at 2.66, while the 14-day reading stands at 1.21.

Analyst Ratings

Wells Fargo upgraded its rating on Amgen Inc. (NASDAQ: AMGN) to an Overweight in a note to investors on March 13, 2023. The analysts firm previously had an Equal weight rating on the stock.Amgen Inc. (AMGN) has been rated Hold by analysts. According to 2 brokerage firms, AMGN is a sell, and 14 firms recommend it is a Hold. There are 2 analysts who say the stock is underweight. A total of 0 analysts rate Amgen Inc. stock as buy, with 7 recommending it as overweight.

With a median target price of $259.00, the current consensus forecast for the stock is $175.00 – $325.00. Based on these forecasts, analysts predict Amgen Inc. (AMGN) will achieve an average price target of $253.56.


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