Amgen Story

<div class='circular--portrait' style='background:#800000;color: #F8F8FF;font-size:3em;'>AMG</div>
AMGN -- USA Stock  

USD 243.82  3.50  1.46%

Amgen is currently generating 0.136% in daily expected returns and assumes 1.8981% risk (volatility on return distribution) over the 60 days horizon. While some risk-seeking institutional investors are getting worried about healthcare space, it is reasonable to outline Amgen Inc as a possible investment alternative. We will inspect if the expected returns on Amgen will justify its current volatility. Amgen's very low volatility may have no significant impact on the stock's value as we estimate Amgen as currently overvalued. The real value, based on our calculations, is getting close to 239.19 per share.
Published over two months ago
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Is Amgen (NASDAQ:AMGN) low volatility a good sign for institutional investors?
Amgen Inc currently holds 31.85 B in liabilities with Debt to Equity (D/E) ratio of 3.36, implying Amgen Inc greatly relies on financing operations through barrowing. The entity has a current ratio of 1.56, which is within standard range for the sector.
Volatility is a rate at which the price of Amgen or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Amgen may increase or decrease. In other words, similar to Amgen's beta indicator, it measures the risk of Amgen and helps estimate the fluctuations that may happen in a short period of time. So if prices of Amgen fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility. Please read more on our technical analysis page.

How important is Amgen's Liquidity

Amgen financial leverage refers to using borrowed capital as a funding source to finance Amgen Inc ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Amgen financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Amgen's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Amgen, but it might be worth checking our own buy vs. sell analysis

Amgen Volatility Drivers

Amgen unsystematic risk is unique to Amgen Inc and usually not directly affected by the market or economic environment. An example of unsystematic risk is the possibility of poor earnings or a layoff due to coronavirus. One may mitigate nonsystematic risk by buying different securities in the same industry or by buying in different sectors. For example, if you have a position in Amgen you can also buy Astrazeneca PLC. You can also mitigate this risk by investing in the drug manufacturers?general sector as well as in companies having nothing to do with it. This type of risk is also called diversifiable risk and can be understood from analyzing Amgen important indicators over time. Here we run a correlation analysis between relevant fundamental ratios over at least ten year period to find a relationship in the way they react to changes in Amgen income statement and balance sheet. Here are more details about Amgen volatility.
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