Citigroup Raises Amgen Price Target to $315 Amid Analyst Activity
Investors received updated insights on Amgen Inc. as Citigroup increased its price target for the biotechnology company from $310.00 to $315.00. This adjustment was noted in a research report released on the morning of August 5, 2023. Citigroup currently maintains a neutral rating on Amgen’s stock, reflecting a cautious yet optimistic outlook on the company’s performance.
Several other financial institutions have also revisited their assessments of Amgen. On July 23, Bank of America raised its target price from $252.00 to $261.00, assigning an “underperform” rating. In contrast, William Blair reaffirmed an “outperform” rating for the company on June 24, while Piper Sandler increased its target price from $328.00 to $342.00, designating an “overweight” rating on August 25. Meanwhile, UBS Group reduced its price target from $326.00 to $317.00, maintaining a neutral stance.
As a result of these revisions, Amgen’s stock has garnered a diverse range of analyst ratings. Currently, seven analysts rate the stock as a buy, twelve suggest holding, and one recommends selling. According to data from MarketBeat.com, Amgen’s consensus rating stands at “Hold,” with an average price target of $309.70.
Strong Earnings Report and Dividend Announcement
On August 5, Amgen reported strong quarterly earnings, revealing earnings per share (EPS) of $6.02, surpassing analysts’ expectations of $5.28 by $0.74. The company’s revenue reached $9.18 billion, significantly higher than the anticipated $8.86 billion. This financial performance marks a 9.4% increase in revenue year-over-year. In the same quarter last year, Amgen reported an EPS of $4.97.
For the fiscal year 2025, Amgen has provided guidance projecting an EPS range between $20.20 and $21.30. Analysts expect an average EPS of $20.62 for the current fiscal year.
In addition to its earnings report, Amgen announced a quarterly dividend of $2.38, which was paid on September 12, 2023. This amounts to an annualized dividend of $9.52 and represents a yield of 3.5%. The ex-dividend date was set for August 22, and the company’s dividend payout ratio stands at 77.84%.
Insider Trading and Institutional Investments
In related news, Amgen’s Senior Vice President Nancy A. Grygiel sold 1,267 shares of the company on August 20 at an average price of $296.99, totaling approximately $376,286.33. Following this transaction, Grygiel holds 7,209 shares valued at around $2,141,000.91, reflecting a 14.95% decrease in her holdings. This sale was disclosed in a legal filing with the U.S. Securities and Exchange Commission.
Institutional investors have also shown active interest in Amgen. During the first quarter, Wealth Preservation Advisors LLC acquired a new position valued at $25,000. First Pacific Financial increased its holdings by 304.5%, owning 89 shares worth approximately $28,000. CBIZ Investment Advisory Services LLC raised its stake by 1,214.3%, now holding 92 shares valued at $29,000. Additionally, Legacy Investment Solutions LLC purchased a new position worth $27,000 in the second quarter. Institutional investors collectively own 76.50% of Amgen’s stock.
Amgen Inc. is a leading biotechnology company engaged in discovering, developing, manufacturing, and delivering human therapeutics worldwide. The company’s principal products include treatments for various conditions such as rheumatoid arthritis, osteoporosis, and cancer, among others. The company’s diverse portfolio underscores its commitment to addressing significant medical needs globally.
