Nancy A Grygiel Implements A Sell Strategy: Offloads $483K In Amgen Stock

A substantial insider sell was reported on February 7, by Nancy A Grygiel, SVP & CCO at Amgen AMGN, based on the recent SEC filing.

What Happened: Grygiel's recent move involves selling 1,589 shares of Amgen. This information is documented in a Form 4 filing with the U.S. Securities and Exchange Commission on Friday. The total value is $483,807.

Amgen shares are trading down 0.11% at $297.45 at the time of this writing on Friday morning.

Discovering Amgen: A Closer Look

Amgen is a leader in biotechnology-based human therapeutics. Flagship drugs include red blood cell boosters Epogen and Aranesp, immune system boosters Neupogen and Neulasta, and Enbrel and Otezla for inflammatory diseases. Amgen introduced its first cancer therapeutic, Vectibix, in 2006 and markets bone-strengthening drug Prolia/Xgeva (approved 2010) and Evenity (2019). The acquisition of Onyx bolstered the firm's therapeutic oncology portfolio with Kyprolis. Recent launches include Repatha (cholesterol-lowering), Aimovig (migraine), Lumakras (lung cancer), and Tezspire (asthma). The 2023 Horizon acquisition brings several rare-disease drugs, including thyroid eye disease drug Tepezza. Amgen also has a growing biosimilar portfolio.

Amgen: Delving into Financials

Revenue Growth: Over the 3 months period, Amgen showcased positive performance, achieving a revenue growth rate of 23.18% as of 30 September, 2024. This reflects a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Health Care sector.

Insights into Profitability:

• Gross Margin: The company issues a cost efficiency warning with a low gross margin of 61.07%, indicating potential difficulties in maintaining profitability compared to its peers.

• Earnings per Share (EPS): Amgen's EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 5.27.

Debt Management: Amgen's debt-to-equity ratio stands notably higher than the industry average, reaching 8.02. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Analyzing Market Valuation:

• Price to Earnings (P/E) Ratio: Amgen's P/E ratio of 39.39 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: The current P/S ratio of 4.82 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Amgen's EV/EBITDA ratio of 26.82 exceeds industry averages, indicating a premium valuation in the market

Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.

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Illuminating the Importance of Insider Transactions

It's important to note that insider transactions alone should not dictate investment decisions, but they can provide valuable insights.

In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

Transaction Codes To Focus On

Investors prefer focusing on transactions that take place in the open market, indicated in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S indicates a sale. Transaction code C indicates the conversion of an option, and transaction code A indicates grant, award or other acquisition of securities from the company.

Check Out The Full List Of Amgen's Insider Trades.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.