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Amgen (AMGN, $222.91) to buy Five Prime Therapeutics in $1.9 billion deal
Biopharmaceutical company Amgen agreed to buy Five Prime Therapeutics in a cash deal valued at $1.9 billion.
Amgen will pay $38.00 in cash for each outstanding Five Prime share. This implies a 78.7% premium to Wednesday's stock closing price.
The deal is expected to close in the second quarter of 2021, subject to antitrust clearance and approval by Five Prime shareholders.
Five Prime specializes in targeted cancer treatments.
“Five Prime's lead asset, bemarituzumab, is a first-in-class, Phase 3 ready anti-FGFR2b antibody with positive data from a randomized, placebo-controlled Phase 2 study in frontline advanced gastric or gastroesophageal junction cancer,” Amgen said. “The acquisition of Five Prime also supports Amgen's international expansion strategy. Gastric cancer is one of the world's most common forms of cancer and is particularly prevalent in the Asia-Pacific region, where Amgen expects to generate significant volume growth in the coming years.”
AMGN in upward trend: price rose above 50-day moving average on May 12, 2022
AMGN moved above its 50-day Moving Average on May 12, 2022 date and that indicates a change from a downward trend to an upward trend. In 31 of 49 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are 63%.
Current price $253.05 crossed the resistance line at $235.83 and is trading between $255.59 support and $235.83 resistance lines. Throughout the month of 04/26/22 - 05/26/22, the price experienced a +2% Uptrend. During the week of 05/19/22 - 05/26/22, the stock enjoyed a +3% Uptrend growth.
The Momentum Indicator moved above the 0 level on May 12, 2022. You may want to consider a long position or call options on AMGN as a result. In 50 of 82 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 61%.
The Moving Average Convergence Divergence (MACD) for AMGN just turned positive on May 13, 2022. Looking at past instances where AMGN's MACD turned positive, the stock continued to rise in 26 of 42 cases over the following month. The odds of a continued upward trend are 62%.
The 10-day Moving Average for AMGN crossed bullishly above the 50-day moving average on May 19, 2022. This indicates that the trend has shifted higher and could be considered a buy signal. In 12 of 21 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 57%.
Following a +0.46% 3-day Advance, the price is estimated to grow further. Considering data from situations where AMGN advanced for three days, in 186 of 335 cases, the price rose further within the following month. The odds of a continued upward trend are 56%.
AMGN may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The RSI Indicator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
The Stochastic Indicator demonstrated that the ticker has stayed in the overbought zone for 10 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where AMGN declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 52%.
The Aroon Indicator for AMGN entered a downward trend on May 11, 2022. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Tickeron has a positive outlook on this ticker and predicts a further increase by more than 4.00% within the next month with a likelihood of 51%. During the last month, the daily ratio of advancing to declining volumes was 1.42 to 1.
The Tickeron Profit vs. Risk Rating rating for this company is 7 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 60, placing this stock better than average.
The Tickeron Valuation Rating of 10 (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: AMGN's P/B Ratio (147.059) is very high in comparison to the industry average of (7.040). P/E Ratio (25.000) is within average values for comparable stocks, (85.712). Projected Growth (PEG Ratio) (1.508) is also within normal values, averaging (3.210). Dividend Yield (0.029) settles around the average of (0.025) among similar stocks. P/S Ratio (5.438) is also within normal values, averaging (3.883).
The Tickeron PE Growth Rating for this company is 14 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 25 (best 1 - 100 worst), indicating outstanding price growth. AMGN’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron SMR rating for this company is 59 (best 1 - 100 worst), indicating slightly weaker than average sales and a marginally profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Major Pharmaceuticals industry includes companies that are involved in various processes of creating drugs to treat/prevent diseases. These companies engage in research, testing and manufacturing, as well as the distribution of pharmaceuticals into markets. Johnson & Johnson, Merck & Co., Inc., Pfizer Inc. and Novartis are among the largest companies in this category.
The average market capitalization across the Pharmaceuticals: Major Industry is 81.6B. The market cap for tickers in the group ranges from 226K to 472.7B. JNJ holds the highest valuation in this group at 472.7B. The lowest valued company is NEWG at 226K.
The average weekly price growth across all stocks in the Pharmaceuticals: Major Industry was 2.2%. For the same Industry, the average monthly price growth was 0.04%, and the average quarterly price growth was -1.7%. DSKYF experienced the highest price growth at 8.12%, while CRXT experienced the biggest fall at -12.07%.
- 4/29/22 5:52 AM: Amgen (AMGN, $238.13) was a top loser this week, declining -6.78%
The average weekly volume growth across all stocks in the Pharmaceuticals: Major Industry was -11.63%. For the same stocks of the Industry, the average monthly volume growth was -37.48% and the average quarterly volume growth was -28.83%
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Stocks in the group have a Positive Outlook today, backed by the Volume Indicator. Tickeron has a positive outlook on this group and predicts a further increase by more than 4.00% within the next month with a likelihood of 38%. During the last month, the daily ratio of advancing to declining volumes was 1.49 to 1.
8 stocks in the group of tickers confirmed the positive outlook based on the RSI indicator with average odds of 85%.
The most notable companies in this group are Novavax (NASDAQ:NVAX), BioCryst Pharmaceuticals (NASDAQ:BCRX), Cel-Sci Corp (ASE:CVM).
The average market capitalization across the group is 726.4M. The market cap for tickers in the group ranges from 19.7M to 3.7B. NVAX holds the highest valuation in this group at 3.7B. The lowest valued company is GENE at 19.7M.
The average weekly price growth across all stocks in the group was -2.11%. For the same group, the average monthly price growth was -6.57%, and the average quarterly price growth was -50.51%. IDRA experienced the highest price growth at 32.12%, while NVAX experienced the biggest fall at -19.44%.
- 5/20/22 5:28 AM: BioCryst Pharmaceuticals (BCRX, $9.03) was a top weekly gainer, with a +14.45% jump
- 5/19/22 8:24 AM: Novavax (NVAX, $52.11) was a top weekly gainer, with a +21.41% jump
- 5/19/22 8:24 AM: Idera Pharmaceuticals (IDRA, $0.44) is a top weekly gainer for penny stocks, rising +39.49%
The average weekly volume growth across all stocks in the group was -11.13%. For the same stocks of the group, the average monthly volume growth was 152.4% and the average quarterly volume growth was 38.17%
- 5/14/22 4:16 AM: The volume for Compugen stock increased for four consecutive days, resulting in a record-breaking daily growth of 84% of the 65-Day Volume Moving Average
- 4/20/22 8:52 AM: The volume for Idera Pharmaceuticals stock increased for one day, resulting in a record-breaking daily growth of 349% of the 65-Day Volume Moving Average
- 3/19/22 4:43 AM: The volume for Agenus stock increased for one day, resulting in a record-breaking daily growth of 249% of the 65-Day Volume Moving Average
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
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