Matthew C Busch, VP at Amgen AMGN, executed a substantial insider sell on May 7, according to an SEC filing.
What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Wednesday showed that Busch sold 1,000 shares of Amgen. The total transaction amounted to $279,690.
As of Wednesday morning, Amgen shares are up by 0.55%, currently priced at $271.94.
About 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.
Amgen’s Financial Performance
Revenue Growth: Over the 3 months period, Amgen showcased positive performance, achieving a revenue growth rate of 9.43% as of 31 March, 2025. This reflects a substantial increase in the company’s top-line earnings. When compared to others in the Health Care sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Profitability Metrics:
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Gross Margin: The company faces challenges with a low gross margin of 63.58%, suggesting potential difficulties in cost control and profitability compared to its peers.
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Earnings per Share (EPS): Amgen’s EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 3.22.
Debt Management: Amgen’s debt-to-equity ratio is notably higher than the industry average. With a ratio of 9.24, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.
In-Depth Valuation Examination:
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Price to Earnings (P/E) Ratio: Amgen’s P/E ratio of 24.65 is below the industry average, suggesting the stock may be undervalued.
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Price to Sales (P/S) Ratio: The P/S ratio of 4.3 is lower than the industry average, implying a discounted valuation for Amgen’s stock in relation to sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With a below-average EV/EBITDA ratio of 12.69, Amgen presents an opportunity for value investors. This lower valuation may attract investors seeking undervalued opportunities.
Market Capitalization: Positioned above industry average, the company’s market capitalization underscores its superiority in size, indicative of a strong market presence.
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Unmasking the Significance of Insider Transactions
In the complex landscape of investment decisions, investors should approach insider transactions as part of a comprehensive analysis, considering various elements.
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.
Unlocking the Meaning of Transaction Codes
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.
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