Derek Miller Takes Money Off The Table, Sells $593K In Amgen Stock

Revealing a significant insider sell on February 21, Derek Miller, SVP at Amgen AMGN, as per the latest SEC filing.

What Happened: Miller's decision to sell 2,024 shares of Amgen was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Friday. The total value of the sale is $593,933.

Monitoring the market, Amgen's shares up by 0.2% at $298.52 during Friday's morning.

Unveiling the Story Behind Amgen

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 drugs Prolia/Xgeva (approved 2010) and Evenity (2019). The acquisition of Onyx Pharmaceuticals 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 brought several rare-disease drugs, including thyroid eye disease drug Tepezza. Amgen also has a growing biosimilar portfolio.

Understanding the Numbers: Amgen's Finances

Revenue Growth: Amgen's remarkable performance in 3 months is evident. As of 31 December, 2024, the company achieved an impressive revenue growth rate of 10.86%. This signifies a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Health Care sector.

Profitability Metrics:

• Gross Margin: The company faces challenges with a low gross margin of 65.75%, suggesting potential difficulties in cost control and profitability compared to its peers.

• Earnings per Share (EPS): Amgen's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 1.17.

Debt Management: Amgen's debt-to-equity ratio stands notably higher than the industry average, reaching 10.23. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Insights into Valuation Metrics:

• Price to Earnings (P/E) Ratio: The P/E ratio of 39.41 is lower than the industry average, implying a discounted valuation for Amgen's stock.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 4.82, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio of 15.59 trails industry averages, indicating a potential disparity in market valuation that could be advantageous for investors.

Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.

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Delving Into the Significance of Insider Transactions

Insider transactions contribute to decision-making but should be supplemented by a comprehensive investment analysis.

When discussing legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Transaction Codes Worth Your Attention

When it comes to transactions, investors tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S indicates a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a 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.