Allstate Corp has significantly increased its investment in Amgen Inc. (NASDAQ: AMGN), raising its stock position by an impressive 1,673.5% during the third quarter of 2023. According to a recent filing with the Securities and Exchange Commission, Allstate now owns 19,615 shares of the biotechnology company, valued at approximately $5.54 million as of the end of the reporting period after acquiring an additional 18,509 shares.
This surge in Allstate’s holdings reflects a broader trend among institutional investors, with several large funds also adjusting their positions in Amgen. Notably, NorthCrest Asset Management LLC increased its stake by 1.9%, now owning 104,497 shares valued at $30.88 million. Meanwhile, Wealth Enhancement Advisory Services LLC grew its holdings by 0.4%, bringing its total to 400,586 shares worth $118.39 million.
DeDora Capital Inc. and Rovin Capital UT ADV also made adjustments, increasing their positions by 2.8% and 3.5%, respectively. Currently, institutional investors collectively hold 76.50% of Amgen’s stock.
Amgen’s Market Performance and Financial Results
Shares of Amgen opened at $330.41 on the day following its latest earnings report, which was released on November 4, 2023. The company reported earnings of $5.64 per share, exceeding analysts’ expectations of $5.01 by $0.63. Amgen achieved $9.56 billion in quarterly revenue, surpassing the forecast of $8.98 billion and marking a 12.4% increase year-over-year.
As of now, Amgen’s market capitalization stands at $177.92 billion, with a price-to-earnings (P/E) ratio of 25.53 and a beta of 0.45. The biotechnology firm’s stock has fluctuated between a 1-year low of $261.43 and a 1-year high of $346.38.
Amgen has also set its fiscal year 2025 guidance, forecasting earnings per share between $20.60 and $21.40. Analysts predict an average earnings per share of $20.62 for the current fiscal year.
Dividend Announcement and Analyst Ratings
Recently, Amgen declared a quarterly dividend of $2.52 per share, scheduled for payment on March 6, 2024. This marks an increase from the previous dividend of $2.38, representing an annualized dividend of $10.08 and a yield of 3.1%. The ex-dividend date is set for February 13, 2024, with a dividend payout ratio currently at 73.57%.
In light of Amgen’s recent performance, several brokerages have adjusted their target prices for the stock. Daiwa Capital Markets raised its target from $310.00 to $370.00, while Argus increased its price target from $310.00 to $360.00. Other firms like Guggenheim and Bank of America have also made adjustments, indicating a mix of ratings from “Strong Buy” to “Underperform.”
Analyst consensus reflects a moderate buy rating for Amgen, with an average target price of $339.45.
In related news, several insider transactions have occurred recently, including the sale of 6,879 shares by EVP Murdo Gordon for approximately $2.32 million. This sale represents a 14.10% decrease in his ownership. Additionally, SVP Rachna Khosla sold 890 shares for around $299,254, which is an 11.16% reduction in her holdings.
Amgen, founded in 1980 and headquartered in Thousand Oaks, California, is a global leader in biotechnology, focusing on developing therapies for serious illnesses through innovative biologic medicines. The company continues to expand its portfolio, primarily in oncology, supportive care, nephrology, and cardiovascular health.
