Wesbanco Bank Inc. has increased its stake in Amgen Inc. (NASDAQ:AMGN) by 4.0% during the third quarter of 2023, according to a recent filing with the Securities and Exchange Commission (SEC). The institutional investor now holds 69,808 shares of the biotechnology company after acquiring an additional 2,684 shares in the period, bringing the total value of its holdings to approximately $19.7 million.
Several other institutional investors have also adjusted their positions in Amgen recently. Legacy Investment Solutions LLC entered a new investment valued at about $27,000 in the second quarter. Similarly, Evelyn Partners Investment Management LLP and Howard Hughes Medical Institute each purchased new stakes worth around $32,000 during the same period. Quaker Wealth Management LLC significantly increased its position by 200%, now owning 120 shares valued at $34,000 after acquiring an additional 240 shares. Cloud Capital Management LLC also bought a new stake in Amgen during the third quarter, valued at about $34,000. Currently, institutional investors hold approximately 76.5% of Amgen’s stock.
Wall Street Analysts Project Positive Growth for Amgen
Amgen has recently been the focus of multiple research reports, with analysts forecasting growth for the stock. Piper Sandler raised its price target for Amgen shares from $342.00 to $381.00, assigning an “overweight” rating. Royal Bank of Canada also increased its target from $335.00 to $360.00, giving the stock an “outperform” rating. Furthermore, UBS Group lifted its target price from $380.00 to $390.00, maintaining a “buy” rating.
Overall, one analyst has rated the stock as a Strong Buy, fourteen have assigned it a Buy rating, ten have issued a Hold rating, and one has given it a Sell rating. According to MarketBeat, Amgen currently holds a consensus rating of “Moderate Buy” with a consensus price target of $351.65.
Despite the positive outlook, shares of Amgen declined by 2.2% on Tuesday, opening at $375.82. The company’s 50-day moving average stands at $335.21, while the 200-day moving average is $311.98. Amgen has a market capitalization of $202.37 billion and a price-to-earnings (PE) ratio of 26.41.
Amgen Reports Strong Quarterly Earnings
On February 3, 2023, Amgen announced its quarterly earnings results, reporting earnings per share (EPS) of $5.29, surpassing the consensus estimate of $4.76 by $0.53. The company generated revenue of $9.87 billion, exceeding the expected $9.46 billion. This represents an 8.6% increase in revenue compared to the same quarter last year.
Amgen’s net margin stood at 20.98%, while the return on equity was an impressive 148.37%. The firm has set its fiscal year 2026 guidance for EPS between $21.60 and $23.00. Analysts anticipate the company will post an EPS of $20.62 for the current fiscal year.
Recently, Amgen announced a quarterly dividend of $2.52 per share, payable on March 6, 2023, to investors of record as of February 13, 2023. This marks an increase from the previous dividend of $2.38. The annualized dividend now stands at $10.08, reflecting a yield of 2.7% with a payout ratio of 66.90%.
Insider Transactions Raise Questions
In related news, there have been notable insider transactions at Amgen. Senior Vice President Rachna Khosla sold 890 shares on November 12, 2023, at an average price of $336.24, totaling approximately $299,253.60. Following this transaction, Khosla holds 7,082 shares valued at around $2.38 million, marking an 11.16% decrease in her position.
Executive Vice President Murdo Gordon also sold 6,879 shares on the same day for an average price of $336.83, amounting to approximately $2.32 million. After the sale, Gordon holds 41,923 shares valued at about $14.12 million, which is a 14.10% decrease in his holdings. In the past ninety days, insiders have sold a total of 10,908 shares of Amgen stock worth $3.67 million, and insiders currently own 0.69% of the company’s stock.
About Amgen
Founded in 1980 and headquartered in Thousand Oaks, California, Amgen Inc. is a global biotechnology company that develops human therapeutics for serious illnesses. The company specializes in biologic medicines derived from cellular and molecular biology, with a focus on translating advances in human genetics and protein science into effective therapies. Amgen’s commercial portfolio includes biologics used in oncology, supportive care, nephrology, bone health, and cardiovascular disease.
