Amgen Stock Analysis: Buy, Sell, or Hold at $270

Amgen stock declined 6% after mid-stage clinical trial results for its obesity drug candidate, MariTide, indicated the need for a low initial dosage to reduce side effects. Despite this, the stock is considered an appealing investment at $270 per share due to solid performance and a strong financial base. Amgen's valuation is moderate, with a price-to-sales ratio of 4.6 and a price-to-free cash flow ratio of 14.4, compared to the S&P 500. Revenues have grown at an average annual rate of 9.3% over the last 3 years.

Amgen Inc. (NASDAQ: AMGN) stock experienced a 6% decline on June 19, 2025, following mid-stage clinical trial results for its obesity drug candidate, MariTide. The trial indicated that a low initial dosage is necessary to reduce side effects, which has led to concerns about the drug's efficacy and market potential. Despite this setback, Amgen's stock remains an appealing investment at $270 per share, driven by its solid performance and strong financial base.

Amgen's latest earnings report, released on May 1, 2025, showed an earnings per share (EPS) of $4.90, beating analysts' expectations by $0.72. The company's revenue grew by 9.4% year-over-year, reaching $8.15 billion. The stock has a market capitalization of $150.75 billion, a price-to-sales ratio of 4.6, and a price-to-free cash flow ratio of 14.4, which are moderate compared to the S&P 500. Over the past three years, Amgen's revenues have grown at an average annual rate of 9.3% [1].

Institutional investors and hedge funds have shown significant interest in Amgen. Spire Wealth Management, for example, boosted its stake by 249.3% during the first quarter of 2025, owning 18,345 shares after purchasing an additional 13,093 shares. Other notable investors include Capital World Investors, Norges Bank, and Charles Schwab Investment Management Inc., all of whom have increased their holdings in Amgen [1].

Analysts have mixed ratings for Amgen. William Blair and Wall Street Zen have upgraded the stock, while Piper Sandler and UBS Group have maintained neutral ratings. The stock currently has an average rating of "Hold" with a consensus price target of $309.22 [1].

Despite the recent decline, Amgen's valuation metrics suggest that the stock is undervalued. The Forward P/E ratio of 13.33 is lower than the industry average of 19.83, and the PEG ratio of 2.51 indicates a favorable growth rate compared to the industry average of 1.37 [2].

References:
[1] https://www.marketbeat.com/instant-alerts/filing-amgen-inc-nasdaqamgn-shares-bought-by-spire-wealth-management-2025-06-25/
[2] https://www.nasdaq.com/articles/amgen-amgn-stock-moves-103-what-you-should-know