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

Amgen Inc. (NASDAQ:AMGN)’s stock 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 trading hands.

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

Amgen Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, June 7th. Shareholders of record on Friday, May 17th will be issued a $2.25 dividend. The ex-dividend date is Thursday, May 16th. This represents a $9.00 dividend on an annualized basis and a yield of 2.87%. Amgen’s payout ratio is currently 72.06%.

Wall Street Analyst Weigh In

Several equities research analysts recently issued reports on AMGN shares. Royal Bank of Canada reiterated an “outperform” rating and set a $329.00 price target on shares of Amgen in a report on Wednesday, April 3rd. BMO Capital Markets lifted their price target on shares of Amgen from $336.00 to $355.00 and gave the stock an “outperform” rating in a research note on Friday. Barclays upgraded shares of Amgen from an “underweight” rating to an “equal weight” rating and raised their price objective for the stock from $230.00 to $300.00 in a report on Friday. The Goldman Sachs Group lifted their target price on Amgen from $313.00 to $350.00 and gave the stock a “buy” rating in a report on Wednesday, February 7th. Finally, William Blair upgraded shares of Amgen from a “market perform” rating to an “outperform” rating in a research note on Friday. Eleven equities research analysts have rated the stock with a hold rating and eleven have assigned a buy rating to the stock. Based on data from MarketBeat, Amgen has an average rating of “Moderate Buy” and an average target price of $302.35.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in AMGN. Fuller & Thaler Asset Management Inc. lifted its holdings in shares of Amgen by 1.7% during the 3rd quarter. Fuller & Thaler Asset Management Inc. now owns 11,658 shares of the medical research company’s stock worth $3,133,000 after acquiring an additional 193 shares during the last quarter. Diversified Trust Co grew its stake in shares of Amgen by 76.8% during the fourth quarter. Diversified Trust Co now owns 37,695 shares of the medical research company’s stock valued at $10,857,000 after buying an additional 16,376 shares during the last quarter. Nicolet Advisory Services LLC boosted its stake in shares of Amgen by 4.4% during the third quarter. Nicolet Advisory Services LLC now owns 2,805 shares of the medical research company’s stock valued at $745,000 after purchasing an additional 117 shares in the last quarter. Platform Technology Partners grew its holdings in shares of Amgen by 7.4% during the third quarter. Platform Technology Partners now owns 5,830 shares of the medical research company’s stock valued at $1,567,000 after buying an additional 402 shares during the last quarter. Finally, Global Wealth Management Investment Advisory Inc. boosted its stake in shares of Amgen by 2.4% during the 4th quarter. Global Wealth Management Investment Advisory Inc. now owns 4,733 shares of the medical research company’s stock worth $1,363,000 after acquiring an additional 109 shares in the last quarter. Institutional investors own 76.50% of the company’s stock.

Amgen Price Performance

The stock’s 50-day simple moving average is $274.51 and its two-hundred day simple moving average is $281.33. The company has a quick ratio of 1.13, a current ratio of 1.65 and a debt-to-equity ratio of 10.14. The company has a market capitalization of $168.19 billion, a price-to-earnings ratio of 25.17, a PEG 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.