Is Amgen Stock a Good Investment?

Amgen Investment Advice

  AMGN
To provide specific investment advice or recommendations on Amgen Inc stock, we recommend investors consider the following general factors when evaluating Amgen Inc. This will help you to make an informed decision on whether to include Amgen in one of your diversified portfolios:
  • Examine Amgen's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
  • Research Amgen's leadership team and their track record. Good management can help Amgen navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
  • Consider the overall health of the Biotechnology space and any emerging trends that could impact Amgen's business and its evolving consumer preferences.
  • Compare Amgen's performance and market position to its competitors. Analyze how Amgen is positioned in terms of product offerings, innovation, and market share.
  • Check if Amgen pays a dividend and its dividend yield and payout ratio.
  • Review what financial analysts are saying about Amgen's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Amgen Inc stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Amgen Inc is a good investment.
 
Sell
 
Buy
Cautious Hold
Macroaxis provides advice on Amgen Inc to complement and cross-verify current analyst consensus on Amgen Inc. Our investment recommendation engine determines the company's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure Amgen is not overpriced, please confirm all Amgen Inc fundamentals, including its ebitda, short ratio, and the relationship between the price to book and total debt . Given that Amgen Inc has a price to earning of 22.74 X, we suggest you to validate Amgen Inc market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

Market Performance

OKDetails

Volatility

Very steadyDetails

Hype Condition

Under hypedDetails

Current Valuation

OvervaluedDetails

Odds Of Distress

LowDetails

Economic Sensitivity

Almost neglects market trendsDetails

Investor Sentiment

ImpartialDetails

Analyst Consensus

BuyDetails

Financial Strenth (F Score)

PoorDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails

Examine Amgen Stock

Researching Amgen's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 81.0% of the company shares are held by institutions such as insurance companies. The company has Price/Earnings To Growth (PEG) ratio of 2.39. Amgen Inc recorded earning per share (EPS) of 6.99. The entity last dividend was issued on the 16th of May 2024. The firm had 2:1 split on the 22nd of November 1999.
To determine if Amgen is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Amgen's research are outlined below:
Amgen Inc has a poor financial position based on the latest SEC disclosures
Over 81.0% of the company shares are held by institutions such as insurance companies
Latest headline from bizjournals.com: Amgen opts to sublease Peninsula space taken in 3.9 billion buyout

Amgen Quarterly Cost Of Revenue

3.2 Billion

Amgen uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Amgen Inc. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Amgen's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
6th of February 2024
Upcoming Quarterly Report
View
25th of April 2024
Next Financial Report
View
31st of December 2023
Next Fiscal Quarter End
View
6th of February 2024
Next Fiscal Year End
View
30th of September 2023
Last Quarter Report
View
31st of December 2022
Last Financial Announcement
View
Earnings surprises can significantly impact Amgen's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Amgen's investors have experienced.
Reported
Fiscal Date
Estimated EPS
Reported EPS
Surprise
1998-07-22
1998-06-300.180.210.0316 
1999-10-20
1999-09-300.240.280.0416 
2006-07-20
2006-06-300.941.050.1111 
2008-07-28
2008-06-301.021.140.1211 
2009-07-27
2009-06-301.161.290.1311 
2008-10-22
2008-09-301.081.230.1513 
2012-04-24
2012-03-311.451.610.1611 
2005-07-19
2005-06-300.720.880.1622 

Amgen Target Price Consensus

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Amgen target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. Amgen's target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
   30  Buy
Most Amgen analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand Amgen stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of Amgen Inc, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice   Exposure   Valuation

Amgen Target Price Projection

Amgen's current and average target prices are 307.37 and 258.80, respectively. The current price of Amgen is the price at which Amgen Inc is currently trading. On the other hand, Amgen's target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.

Current Price

Amgen Market Quote on 16th of June 2024

Low Price307.05Odds
High Price310.92Odds

307.37

Target Price

Analyst Consensus On Amgen Target Price

Low Estimate235.51Odds
High Estimate287.27Odds

258.8

Historical Lowest Forecast  235.51 Target Price  258.8 Highest Forecast  287.27
Note that most analysts generally publish their price targets in research reports on specific companies, along with recommendations for the company's stock.Although price targets are often quoted in the financial news media, there could be a delay between the publication of the latest analyst outlook on Amgen Inc and the information provided on this page.

Amgen Analyst Ratings

Amgen's analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about Amgen stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of Amgen's financials, market performance, and future outlook by experienced professionals. Amgen's historical ratings below, therefore, can serve as a valuable tool for investors.

Know Amgen's Top Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Amgen is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Amgen Inc backward and forwards among themselves. Amgen's institutional investor refers to the entity that pools money to purchase Amgen's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Shares
Royal Bank Of Canada2024-03-31
5.5 M
Norges Bank2023-12-31
5.4 M
Bank Of New York Mellon Corp2024-03-31
5.4 M
Legal & General Group Plc2024-03-31
4.9 M
Barclays Plc2024-03-31
4.3 M
Goldman Sachs Group Inc2024-03-31
4.3 M
Aristotle Capital Management Llc2024-03-31
M
Fmr Inc2024-03-31
M
Ubs Group Ag2024-03-31
3.7 M
Vanguard Group Inc2024-03-31
52.1 M
Blackrock Inc2024-03-31
48 M
Note, although Amgen's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Amgen's market capitalization trends

The company currently falls under 'Mega-Cap' category with a current market capitalization of 160.19 B.

Market Cap

121.6 Billion

Amgen's profitablity analysis

Last ReportedProjected for Next Year
Return On Tangible Assets 0.15  0.12 
Return On Capital Employed 0.10  0.10 
Return On Assets 0.07  0.12 
Return On Equity 1.08  1.13 
The company has Profit Margin (PM) of 0.13 %, which maeans that even a very small decline in it revenue will erase profits resulting in a net loss. This is way below average. Similarly, it shows Operating Margin (OM) of 0.13 %, which suggests for every 100 dollars of sales, it generated a net operating income of $0.13.
Determining Amgen's profitability involves analyzing its financial statements and using various financial metrics to determine if Amgen is a good buy. For example, gross profit margin measures Amgen's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Amgen's profitability and make more informed investment decisions.

Amgen's Earnings Breakdown by Geography

The data published in Amgen's official financial statements typically reflect Amgen's business processes, product offerings, services, and other fundamental events. However, there are additional fundamental indicators that are easier to understand and visualize along the underlying realities that are driving Amgen's quantitative information. For example, before you start analyzing numbers published by Amgen accountants, it’s essential to understand Amgen's liquidity, profitability, and earnings quality within the context of the Biotechnology space in which it operates.

Evaluate Amgen's management efficiency

Amgen Inc has return on total asset (ROA) of 0.0488 % which means that it generated a profit of $0.0488 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 0.7257 %, meaning that it created $0.7257 on every $100 dollars invested by stockholders. Amgen's management efficiency ratios could be used to measure how well Amgen manages its routine affairs as well as how well it operates its assets and liabilities. At this time, Amgen's Return On Assets are very stable compared to the past year. As of the 16th of June 2024, Return On Equity is likely to grow to 1.13, while Return On Tangible Assets are likely to drop 0.12. At this time, Amgen's Return On Assets are very stable compared to the past year. As of the 16th of June 2024, Asset Turnover is likely to grow to 0.51, while Other Current Assets are likely to drop about 266.9 M.
Last ReportedProjected for Next Year
Book Value Per Share 11.65  10.26 
Tangible Book Value Per Share(84.18)(79.97)
Enterprise Value Over EBITDA 14.04  11.29 
Price Book Value Ratio 24.73  25.96 
Enterprise Value Multiple 14.04  11.29 
Price Fair Value 24.73  25.96 
Enterprise Value51.4 B53.9 B
The analysis of Amgen's management efficiency is an essential part of evaluating and assessing the financial and operational performance of the entity. It is also vital to analyze Amgen's future growth prospects and the overall market conditions to determine the value and potential of its stock. The analysis involves studying a range of financial metrics such as revenue, earnings, profit margins, cash flow, debt, market share, and external factors such as economic trends, industry outlook, competition, and government regulations. The goal of Amgen Stock analysis is to determine whether it is undervalued, fairly valued, or overvalued and to make informed investment decisions.
Dividend Yield
0.0301
Forward Dividend Yield
0.0301
Forward Dividend Rate
9
Beta
0.601

Basic technical analysis of Amgen Stock

As of the 16th of June 2024, Amgen shows the mean deviation of 1.29, and Risk Adjusted Performance of 0.0426. Amgen Inc technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices.

Amgen's insider trading activities

Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Amgen insiders, such as employees or executives, is commonly permitted as long as it does not rely on Amgen's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Amgen insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.

Amgen's Outstanding Corporate Bonds

Amgen issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Amgen Inc uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Amgen bonds can be classified according to their maturity, which is the date when Amgen Inc has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.

Understand Amgen's technical and predictive indicators

Using predictive indicators to make investment decisions involves analyzing Amgen's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.

Consider Amgen's intraday indicators

Amgen intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Amgen stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.

Amgen Corporate Filings

12th of June 2024
Other Reports
ViewVerify
F3
4th of June 2024
The report used by insiders such as officers, directors, and major shareholders (beneficial owners holding more than 10% of any class of the company's equity securities) to declare their ownership of a company's stock
ViewVerify
8K
3rd of June 2024
Report filed with the SEC to announce major events that shareholders should know about
ViewVerify
10th of May 2024
Other Reports
ViewVerify
Amgen time-series forecasting models is one of many Amgen's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Amgen's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

Amgen Stock media impact

Far too much social signal, news, headlines, and media speculation about Amgen that are available to investors today. That information is available publicly through Amgen media outlets and privately through word of mouth or via Amgen internal channels. However, regardless of the origin, that massive amount of Amgen data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Amgen news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Amgen relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Amgen's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Amgen alpha.

Amgen Sentiment by Major News Outlets

Investor sentiment, mood or attitude towards Amgen can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.

Amgen Inc Historical Investor Sentiment

Investor biases related to Amgen's public news can be used to forecast risks associated with an investment in Amgen. The trend in average sentiment can be used to explain how an investor holding Amgen can time the market purely based on public headlines and social activities around Amgen Inc. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Amgen's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Amgen and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Amgen news discussions. The higher the estimate score, the more favorable the investor's outlook on Amgen.

Amgen Maximum Pain Price across 2024-06-21 Option Contracts

Amgen's options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of Amgen close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of Amgen's options.

Amgen Corporate Management

Linda LouieVP OfficerProfile
James MDExecutive OfficerProfile
Nancy GrygielSenior OfficerProfile
Justin ClaeysVice RelationsProfile

Already Invested in Amgen Inc?

The danger of trading Amgen Inc is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Amgen is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Amgen. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Amgen Inc is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.

Additional Information and Resources on Investing in Amgen Stock

When determining whether Amgen Inc offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Amgen's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Amgen Inc Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Amgen Inc Stock:
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Amgen Inc. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in price.
You can also try the Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Is Biotechnology space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Amgen. If investors know Amgen will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Amgen listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.52)
Dividend Share
8.64
Earnings Share
6.99
Revenue Per Share
55.148
Quarterly Revenue Growth
0.22
The market value of Amgen Inc is measured differently than its book value, which is the value of Amgen that is recorded on the company's balance sheet. Investors also form their own opinion of Amgen's value that differs from its market value or its book value, called intrinsic value, which is Amgen's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Amgen's market value can be influenced by many factors that don't directly affect Amgen's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Amgen's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Amgen is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Amgen's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.