On August 19, 2026, Amgen Inc AMGN shares rose 4.0%, bringing the current price to $442.36. Over the past year, AMGN has experienced significant price movement, with a 52-week range of $269.77 to $443.20, showcasing its volatility and potential for growth.
- GF Valueâ„¢ verdict: $365.04, indicating the stock is 21.2% overvalued.
- GF Scoreâ„¢ of 79/100, reflecting an above-average assessment of the company's fundamentals.
- Insider activity shows a net sale of $29.7M over the past 12 months, with no purchases, indicating a cautious sentiment among insiders.
Is AMGN Overvalued or Undervalued?
Amgen Inc's current price of $442.36 is significantly higher than the GF Valueâ„¢ estimate of $365.04, indicating that the stock is overvalued by approximately 21.2%. The GF Valueâ„¢ is GuruFocus' proprietary intrinsic value estimate, which is derived from a combination of historical trading multiples, past business growth, and future performance projections. The assessment of AMGN being modestly overvalued raises a cautionary flag for potential investors looking for a margin of safety.
Given the current valuation, investors should be aware of the risks associated with investing in a company that is trading above its estimated intrinsic value. The high valuation could lead to increased volatility, especially if the company's future performance does not meet market expectations. However, the strong historical performance of Amgen, with a 54.2% increase over the past year, may provide some confidence to investors, despite the overvaluation signal.
How Does AMGN's Valuation Compare to Its History?
| Metric | Current | Historical |
|---|---|---|
| P/E (TTM) | 27.5x | 23.1x |
| Forward P/E | 19.2x | N/A |
Currently, Amgen's Price-to-Earnings (P/E) ratio of 27.5x is 19% above its 5-year median P/E of 23.1x, indicating that the stock is trading at a premium compared to its historical valuation. This analysis aligns with the GF Valueâ„¢ assessment, reinforcing the view that AMGN is overvalued at present levels.
What Does AMGN's GF Scoreâ„¢ Tell Us?
The GF Scoreâ„¢ measures the overall quality of a company's fundamentals, including financial strength, profitability, growth potential, valuation, and momentum. Amgen's GF Scoreâ„¢ of 79/100 reflects its strong fundamentals, particularly in profitability and growth.
| Metric | Rating |
|---|---|
| GF Scoreâ„¢ | 79/100 |
| Financial Strength | 4/10 |
| Profitability | 10/10 |
| Growth | 9/10 |
| Valuation | 6/10 |
| Momentum | 1/10 |
Amgen's strongest area lies in its profitability rank of 10/10, indicating exceptional profit generation capabilities. Conversely, the momentum rank of 1/10 suggests that the stock has not demonstrated strong upward price movement recently, which could be a concern for short-term investors. Overall, while the company's fundamentals are solid, the weaker financial strength score indicates that there may be some vulnerabilities in its balance sheet.
What Are Gurus and Insiders Doing with AMGN?
Currently, 13 gurus hold shares of Amgen, with 6 adding to their positions and 7 trimming their stakes in recent quarters. This indicates a mixed sentiment among notable investors regarding the stock's future potential. The guru ownership signal is a significant indicator as it reflects the decisions of experienced investors who have access to extensive research and analysis.
On the insider front, the sale of $29.7M worth of shares over the past year without any buying activity suggests a cautious outlook from those within the company. This pattern of selling could imply that insiders are not confident in the stock's current valuation or future performance, which potential investors should consider when evaluating the attractiveness of the stock.
What This Means for Investors
Based on the GF Valueâ„¢ assessment, Amgen Inc AMGN is currently overvalued at $442.36 compared to its intrinsic value estimate of $365.04. The substantial overvaluation, coupled with mixed signals from gurus and insiders, suggests that potential investors should exercise caution and carefully consider the stock's risks before making investment decisions. For more detailed insights, you can visit the Amgen Inc (AMGN) stock page.
Frequently Asked Questions
What is AMGN's GF Scoreâ„¢?
AMGN has a GF Scoreâ„¢ of 79/100, indicating above-average quality in its fundamentals and financial health.
Is AMGN overvalued or undervalued?
AMGN is overvalued according to the GF Valueâ„¢, which estimates its fair value at $365.04, suggesting a 21.2% premium over its current price.
What is AMGN's P/E ratio?
AMGN's current P/E (TTM) ratio is 27.5x, which is 19% higher than its 5-year median P/E of 23.1x, indicating a higher valuation compared to its historical averages.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
