NewAmsterdam Pharma (NASDAQ:NAMS) Sees Strong Trading Volume on Strong Earnings

Key Points

• Shares of NewAmsterdam Pharma surged on heavy trading after the company reported better-than-expected quarterly results, last trading around $39.52 versus a prior close of $34.85 on volume of roughly 825,732 shares.
• Despite a reported EPS of ($0.40), negative margins and only $3.04 million in revenue, analysts largely raised price targets (consensus “Moderate Buy”) with an average target of about $48.
• Insider selling has been significant: CEO Michael H. Davidson sold 443,707 shares (~$14.75M) and insiders have disposed of about 1.17M shares (~$38.2M) over the last 90 days, reducing insider holdings materially.

Shares of NewAmsterdam Pharma Company N.V. (NASDAQ:NAMS - Get Free Report) saw unusually-strong trading volume on Friday after the company announced better than expected quarterly earnings. Approximately 825,732 shares were traded during trading, a decline of 3% from the previous session's volume of 850,710 shares.The stock last traded at $39.5240 and had previously closed at $34.85.

The company reported ($0.40) earnings per share for the quarter. NewAmsterdam Pharma had a negative return on equity of 26.67% and a negative net margin of 906.22%.The company had revenue of $3.04 million during the quarter.

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Analysts Set New Price Targets

A number of equities analysts have recently weighed in on NAMS shares. Royal Bank Of Canada upped their price target on shares of NewAmsterdam Pharma from $44.00 to $47.00 and gave the stock an "outperform" rating in a research note on Wednesday, January 21st. Needham & Company LLC upped their price target on shares of NewAmsterdam Pharma from $46.00 to $48.00 and gave the stock a "buy" rating in a research note on Wednesday, February 18th. Cantor Fitzgerald reaffirmed an "overweight" rating on shares of NewAmsterdam Pharma in a research note on Thursday, February 19th. HC Wainwright raised shares of NewAmsterdam Pharma to a "strong-buy" rating in a research note on Thursday, February 19th. Finally, Wall Street Zen downgraded shares of NewAmsterdam Pharma from a "hold" rating to a "sell" rating in a research report on Saturday, February 21st. One research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, NewAmsterdam Pharma presently has a consensus rating of "Moderate Buy" and an average price target of $48.00.

Insider Buying and Selling at NewAmsterdam Pharma

In other news, CEO Michael H. Davidson sold 443,707 shares of NewAmsterdam Pharma stock in a transaction that occurred on Monday, March 2nd. The shares were sold at an average price of $33.25, for a total value of $14,753,257.75. Following the transaction, the chief executive officer owned 174,144 shares of the company's stock, valued at $5,790,288. This trade represents a 71.81% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Johannes Jacob Piete Kastelein sold 104,467 shares of the company's stock in a transaction on Thursday, March 5th. The stock was sold at an average price of $30.30, for a total transaction of $3,165,350.10. Following the sale, the insider directly owned 69,302 shares of the company's stock, valued at approximately $2,099,850.60. This represents a 60.12% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 1,168,286 shares of company stock worth $38,211,967 over the last 90 days. Insiders own 20.84% of the company's stock.

Hedge Funds Weigh In On NewAmsterdam Pharma

Several large investors have recently made changes to their positions in NAMS. Farther Finance Advisors LLC lifted its position in shares of NewAmsterdam Pharma by 4,425.0% during the 4th quarter. Farther Finance Advisors LLC now owns 724 shares of the company's stock worth $25,000 after purchasing an additional 708 shares during the last quarter. Mather Group LLC. bought a new position in NewAmsterdam Pharma during the third quarter valued at about $28,000. Wells Fargo & Company MN increased its stake in NewAmsterdam Pharma by 50.0% during the fourth quarter. Wells Fargo & Company MN now owns 900 shares of the company's stock valued at $32,000 after acquiring an additional 300 shares during the period. KBC Group NV bought a new position in NewAmsterdam Pharma during the first quarter valued at about $37,000. Finally, Navalign LLC bought a new position in NewAmsterdam Pharma during the fourth quarter valued at about $46,000. Institutional investors and hedge funds own 89.89% of the company's stock.

NewAmsterdam Pharma Price Performance

The stock has a market capitalization of $4.58 billion, a P/E ratio of -22.76 and a beta of 0.02. The firm has a 50 day moving average of $31.77 and a 200-day moving average of $34.24.

NewAmsterdam Pharma Company Profile

NewAmsterdam Pharma, Inc is a clinical‐stage biopharmaceutical company focused on discovering and developing novel small‐molecule therapies for cardiometabolic diseases. The company’s research efforts are aimed at addressing key unmet needs in metabolic syndrome, obesity and type 2 diabetes by modulating pathways involved in glucose regulation, energy homeostasis and lipid metabolism.

The company’s development pipeline features multiple small‐molecule candidates at various stages of preclinical and clinical evaluation.

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