NewAmsterdam Pharma (NASDAQ:NAMS) Stock Price Down 8% - What's Next?

Key Points

• Shares fell 8% intraday to about $28.02 on Tuesday (743,035 shares traded) even as several brokers raised price targets and the consensus rating remains a “Moderate Buy” with a $48 target.
• The company missed quarterly expectations, reporting EPS of $(0.63) vs. $(0.40) expected and revenue $0.19M vs. $0.92M, leaving an extremely negative net margin (906%) and negative return on equity.
• Significant insider selling has occurred recently — including CEO sales of 443,707 shares — with insiders offloading about 1.2M shares (~$39.25M) over three months, while insiders still own roughly 20.84% of the stock.

NewAmsterdam Pharma Company N.V. (NASDAQ:NAMS - Get Free Report)'s stock price traded down 8% during mid-day trading on Tuesday . The stock traded as low as $28.03 and last traded at $28.0210. 743,035 shares were traded during trading, a decline of 9% from the average session volume of 812,909 shares. The stock had previously closed at $30.45.

Analyst Upgrades and Downgrades

A number of brokerages recently commented on NAMS. Guggenheim increased their price objective on shares of NewAmsterdam Pharma from $41.00 to $45.00 and gave the company a "buy" rating in a research note on Thursday, February 19th. HC Wainwright raised shares of NewAmsterdam Pharma to a "strong-buy" rating in a report on Thursday, February 19th. Cantor Fitzgerald reiterated an "overweight" rating on shares of NewAmsterdam Pharma in a research report on Thursday, February 19th. Needham & Company LLC raised their price objective 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. Finally, Leerink Partners restated an "outperform" rating and set a $55.00 price objective on shares of NewAmsterdam Pharma in a research report on Tuesday, January 6th. One analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $48.00.

NewAmsterdam Pharma Price Performance

The stock has a market capitalization of $3.30 billion, a PE ratio of -16.60 and a beta of 0.13. The company has a 50-day moving average of $32.41 and a two-hundred day moving average of $34.55.

NewAmsterdam Pharma (NASDAQ:NAMS - Get Free Report) last announced its quarterly earnings data on Wednesday, February 18th. The company reported ($0.63) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.40) by ($0.23). The company had revenue of $0.19 million for the quarter, compared to analysts' expectations of $0.92 million. NewAmsterdam Pharma had a negative net margin of 906.22% and a negative return on equity of 26.67%. On average, research analysts forecast that NewAmsterdam Pharma Company N.V. will post -1.89 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, insider Johannes Jacob Piete Kastelein sold 101,409 shares of the firm's stock in a transaction dated Monday, March 9th. The stock was sold at an average price of $30.29, for a total value of $3,071,678.61. Following the transaction, the insider directly owned 69,302 shares in the company, valued at $2,099,157.58. This trade represents a 59.40% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Michael H. Davidson sold 443,707 shares of NewAmsterdam Pharma stock in a transaction dated 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 completion of the transaction, the chief executive officer directly owned 174,144 shares in the company, valued at $5,790,288. This represents a 71.81% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 1,200,898 shares of company stock worth $39,249,029 over the last three months. 20.84% of the stock is owned by insiders.

Institutional Investors Weigh In On NewAmsterdam Pharma

Large investors have recently made changes to their positions in the business. Peregrine Capital Management LLC acquired a new stake in NewAmsterdam Pharma in the 1st quarter valued at $5,714,000. AdvisorNet Financial Inc purchased a new position in shares of NewAmsterdam Pharma during the 1st quarter valued at approximately $82,000. Seven Fleet Capital Management LP purchased a new position in shares of NewAmsterdam Pharma during the 4th quarter valued at approximately $140,000. Empowered Funds LLC acquired a new stake in shares of NewAmsterdam Pharma during the fourth quarter worth approximately $85,000. Finally, XTX Topco Ltd increased its stake in shares of NewAmsterdam Pharma by 1,714.1% in the fourth quarter. XTX Topco Ltd now owns 137,492 shares of the company's stock worth $4,823,000 after buying an additional 129,913 shares during the last quarter. Institutional investors and hedge funds own 89.89% of the company's stock.

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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