Leading biotechnology firm Amgen (AMGN) announced a 10% hike in its quarterly dividend per share to $1.76. Shares were marginally up in the extended trading session on Wednesday following the announcement.
The new dividend will be paid on March 8, 2021, to all shareholders of record as of the close of business on February 15, 2021. Currently, Amgen’s dividend yield stands at 2.81%. The dividend hike comes on the heels of the company’s better-than-anticipated 3Q results despite the impact of the current health crisis. Amgen’s 3Q revenue increased 12% to $6.4 billion on higher volumes, and adjusted EPS grew 19% to $4.37.
On December 15, Goldman Sachs analyst Terence Flynn reiterated a Buy rating on Amgen with a price target of $290, but removed the stock from the firm’s Conviction Buy list. Flynn noted that the company’s late-stage pipeline catalysts that were a component of his bullish thesis have largely played out over the course of 2020.
The analyst believes that in 2021, the focus for Amgen will be more on commercial execution. (See AMGN stock analysis on TipRanks)
Meanwhile, the Street’s cautiously optimistic Moderate Buy analyst consensus breaks down into 11 Buys and 11 Holds. With shares down 5.2% year-to-date, the average price target of $261.05 indicates an upside potential of 14.3% in the months ahead.
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