Amgen (NASDAQ:AMGN) Shares Gap Up on Earnings Beat

Amgen Inc. (NASDAQ:AMGN)’s share price gapped up before the market opened on Friday following a stronger than expected earnings report. The stock had previously closed at $278.39, but opened at $313.39. Amgen shares last traded at $313.33, with a volume of 4,053,898 shares traded.

The medical research company reported $3.96 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.76 by $0.20. Amgen had a return on equity of 154.27% and a net margin of 23.83%. The company had revenue of $7.45 billion during the quarter, compared to the consensus estimate of $7.45 billion. During the same period in the previous year, the company posted $3.98 EPS. The firm’s revenue was up 22.0% on a year-over-year basis.

Amgen Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, June 7th. Stockholders of record on Friday, May 17th will be given a dividend of $2.25 per share. The ex-dividend date is Thursday, May 16th. This represents a $9.00 annualized dividend and a dividend yield of 2.89%. Amgen’s payout ratio is 72.06%.

Wall Street Analysts Forecast Growth

AMGN has been the topic of a number of recent analyst reports. Raymond James assumed coverage on Amgen in a report on Thursday, March 28th. They set a “market perform” rating on the stock. The Goldman Sachs Group boosted their price target on Amgen from $313.00 to $350.00 and gave the stock a “buy” rating in a report on Wednesday, February 7th. BMO Capital Markets increased their price objective on shares of Amgen from $336.00 to $355.00 and gave the company an “outperform” rating in a report on Friday. Royal Bank of Canada lowered their target price on shares of Amgen from $332.00 to $328.00 and set an “outperform” rating on the stock in a report on Friday. Finally, Morgan Stanley raised their target price on shares of Amgen from $271.00 to $310.00 and gave the company an “equal weight” rating in a research note on Friday. Ten equities research analysts have rated the stock with a hold rating and twelve have assigned a buy rating to the company’s stock. According to MarketBeat.com, Amgen presently has an average rating of “Moderate Buy” and an average target price of $305.05.

Insider Transactions at Amgen

In related news, SVP Nancy A. Grygiel sold 2,117 shares of the stock in a transaction on Friday, May 3rd. The stock was sold at an average price of $313.09, for a total transaction of $662,811.53. Following the sale, the senior vice president now owns 9,883 shares in the company, valued at approximately $3,094,268.47. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Company insiders own 0.46% of the company’s stock.

Hedge Funds Weigh In On Amgen

Hedge funds have recently added to or reduced their stakes in the company. J.W. Cole Advisors Inc. increased its stake in Amgen by 11.7% in the third quarter. J.W. Cole Advisors Inc. now owns 2,785 shares of the medical research company’s stock worth $748,000 after purchasing an additional 292 shares during the period. Brown Advisory Inc. increased its stake in Amgen by 1.5% in the 3rd quarter. Brown Advisory Inc. now owns 344,853 shares of the medical research company’s stock worth $92,683,000 after buying an additional 5,253 shares during the period. Rovin Capital UT ADV bought a new stake in Amgen during the 3rd quarter valued at about $360,000. Summit Wealth & Retirement Planning Inc. purchased a new stake in Amgen in the 3rd quarter valued at about $208,000. Finally, Groesbeck Investment Management Corp NJ grew its stake in Amgen by 6.8% in the 3rd quarter. Groesbeck Investment Management Corp NJ now owns 3,588 shares of the medical research company’s stock worth $964,000 after acquiring an additional 230 shares in the last quarter. 76.50% of the stock is currently owned by institutional investors.

Amgen Trading Up 11.8 %

The stock’s 50-day moving average price is $274.51 and its 200 day moving average price is $281.33. The company has a debt-to-equity ratio of 10.14, a current ratio of 1.65 and a quick ratio of 1.13. The firm has a market capitalization of $166.97 billion, a PE ratio of 24.92, a price-to-earnings-growth ratio of 2.68 and a beta of 0.60.

About Amgen

Amgen Inc discovers, develops, manufactures, and delivers human therapeutics worldwide. The company's principal products include Enbrel to treat plaque psoriasis, rheumatoid arthritis, and psoriatic arthritis; Otezla for the treatment of adult patients with plaque psoriasis, psoriatic arthritis, and oral ulcers associated with Behçet's disease; Prolia to treat postmenopausal women with osteoporosis; XGEVA for skeletal-related events prevention; Repatha, which reduces the risks of myocardial infarction, stroke, and coronary revascularization; Nplate for the treatment of patients with immune thrombocytopenia; KYPROLIS to treat patients with relapsed or refractory multiple myeloma; Aranesp to treat a lower-than-normal number of red blood cells and anemia; EVENITY for the treatment of osteoporosis in postmenopausal for men and women; Vectibix to treat patients with wild-type RAS metastatic colorectal cancer; BLINCYTO for the treatment of patients with acute lymphoblastic leukemia; TEPEZZA to treat thyroid eye disease; and KRYSTEXXA for the treatment of chronic refractory gout.