Amphastar Pharmaceuticals (NASDAQ:AMPH) Reaches New 12-Month Low - Should You Sell?

Key Points

• New 52‑week low: AMPH fell to an intraday low of $18.52 and was last at $18.77 on heavy volume, trading well below its 50‑ and 200‑day moving averages (~$26.10 and $26.41).
• Analyst stance: The consensus is a "Hold" (two Buys, six Holds) with an average price target of $29.50 after recent target cuts to $30 by Needham and Wells Fargo.
• Earnings miss and fundamentals: Quarterly EPS missed at $0.73 versus $0.97 expected and revenue was $183.1M (below estimates), though the company shows a P/E of 9.25 and strong liquidity (quick ratio 2.90, current ratio 4.02).

Shares of Amphastar Pharmaceuticals, Inc. (NASDAQ:AMPH - Get Free Report) reached a new 52-week low during mid-day trading on Thursday . The stock traded as low as $18.52 and last traded at $18.77, with a volume of 548286 shares trading hands. The stock had previously closed at $18.91.

Analyst Ratings Changes

A number of research firms have commented on AMPH. Needham & Company LLC reduced their target price on Amphastar Pharmaceuticals from $34.00 to $30.00 and set a "buy" rating for the company in a report on Friday, February 27th. Wells Fargo & Company decreased their target price on Amphastar Pharmaceuticals from $34.00 to $30.00 and set an "overweight" rating for the company in a research report on Friday, February 27th. Zacks Research cut shares of Amphastar Pharmaceuticals from a "strong-buy" rating to a "hold" rating in a research note on Friday, November 14th. Weiss Ratings reiterated a "hold (c-)" rating on shares of Amphastar Pharmaceuticals in a research note on Monday, December 29th. Finally, Barclays assumed coverage on shares of Amphastar Pharmaceuticals in a report on Tuesday, December 9th. They set an "equal weight" rating and a $30.00 price objective for the company. Two research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, Amphastar Pharmaceuticals currently has a consensus rating of "Hold" and an average price target of $29.50.

Amphastar Pharmaceuticals Stock Performance

The company has a market cap of $851.59 million, a P/E ratio of 9.25, a P/E/G ratio of 1.58 and a beta of 0.93. The company has a quick ratio of 2.90, a current ratio of 4.02 and a debt-to-equity ratio of 0.77. The business has a fifty day simple moving average of $26.10 and a two-hundred day simple moving average of $26.41.

Amphastar Pharmaceuticals (NASDAQ:AMPH - Get Free Report) last released its quarterly earnings results on Thursday, February 26th. The company reported $0.73 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.97 by ($0.24). Amphastar Pharmaceuticals had a net margin of 13.63% and a return on equity of 17.58%. The firm had revenue of $183.11 million for the quarter, compared to the consensus estimate of $190.48 million. On average, sell-side analysts anticipate that Amphastar Pharmaceuticals, Inc. will post 3.49 EPS for the current year.

Insider Buying and Selling

In other Amphastar Pharmaceuticals news, EVP Rong Zhou sold 9,787 shares of the company's stock in a transaction that occurred on Wednesday, December 17th. The shares were sold at an average price of $26.20, for a total transaction of $256,419.40. Following the completion of the sale, the executive vice president directly owned 138,043 shares of the company's stock, valued at approximately $3,616,726.60. This represents a 6.62% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Floyd F. Petersen sold 2,426 shares of the stock in a transaction that occurred on Friday, December 12th. The stock was sold at an average price of $25.92, for a total transaction of $62,881.92. Following the completion of the transaction, the director owned 71,368 shares in the company, valued at $1,849,858.56. The trade was a 3.29% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Company insiders own 27.50% of the company's stock.

Institutional Investors Weigh In On Amphastar Pharmaceuticals

Several hedge funds and other institutional investors have recently modified their holdings of AMPH. Farther Finance Advisors LLC lifted its position in Amphastar Pharmaceuticals by 356.0% during the third quarter. Farther Finance Advisors LLC now owns 944 shares of the company's stock valued at $25,000 after purchasing an additional 737 shares in the last quarter. FNY Investment Advisers LLC purchased a new stake in Amphastar Pharmaceuticals in the third quarter worth about $26,000. Global Retirement Partners LLC raised its stake in shares of Amphastar Pharmaceuticals by 219.0% in the third quarter. Global Retirement Partners LLC now owns 1,024 shares of the company's stock worth $27,000 after buying an additional 703 shares during the period. Quarry LP purchased a new position in shares of Amphastar Pharmaceuticals during the 3rd quarter valued at about $32,000. Finally, GAMMA Investing LLC lifted its position in shares of Amphastar Pharmaceuticals by 37.8% during the 4th quarter. GAMMA Investing LLC now owns 1,685 shares of the company's stock valued at $45,000 after buying an additional 462 shares in the last quarter. 65.09% of the stock is currently owned by hedge funds and other institutional investors.

About Amphastar Pharmaceuticals

Amphastar Pharmaceuticals, Inc is a specialty pharmaceutical company headquartered in Rancho Cucamonga, California. Founded in 2004, Amphastar focuses on the development, manufacturing and commercialization of injectable and inhalation products. The company's manufacturing facilities in California produce both generic and proprietary formulations designed to address urgent and chronic medical conditions.

Amphastar's portfolio includes a range of injectable generics such as epinephrine, naloxone and lidocaine, serving hospital, emergency medical and retail pharmacy channels.

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