Amgen: Not An Investment Mistake, But It Was Better Before

Sep. 07, 2023 11:35 AM ETAmgen Inc. (AMGN) StockHZNP, AMGN5 Comments
Daniel Schönberger
13.03K Followers

Summary

  • Amgen could report great quarterly results with revenue, operating income and EPS growing with a solid pace.
  • The stock is undervalued in my opinion and Amgen could be seen as a good investment.
  • However, I think the Horizon acquisition was not the best use of cash and the high debt levels of Amgen are a red flag.

Business mergers and acquisitions concept. Share acquisition, asset business acquisition, amalgamation. Business review and development model. The abbreviation M and A on smart background, copy space.

Parradee Kietsirikul

In my last article about Amgen Inc. (NASDAQ:AMGN), I questioned the acquisition of Horizon Therapeutics Plc (HZNP), and I switched my rating from "Buy" to "Hold". In the meantime, the stock increased about 6.5% and clearly underperformed the S&P 500 (

This article was written by

13.03K Followers
My analysis is focused on high-quality companies, that can outperform the market over the long-run due to a competitive advantage (economic moat) and high levels of defensibility. Focused on European and North American companies, but without constraints regarding market capitalization (from large cap to small cap companies).My academic background is in sociology and I hold a Master’s Degree in Sociology (with main emphasis on organizational and economic sociology) and a Bachelor’s Degree in Sociology and History.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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