NewAmsterdam Pharma (NASDAQ:NAMS) Stock Price Up 10.9% Following Earnings Beat

Key Points

• Shares rose about 10.9% intraday after an earnings beat, trading up to $34.09 on ~78% higher volume, even though the company reported a quarterly EPS loss of ($0.40), revenue of $3.04M, and very negative margins and ROE.
• Analysts are broadly positive: several firms raised price targets or initiated coverage and MarketBeat shows a consensus rating of "Moderate Buy" with a $48.00 target.
• Large insider selling occurred recently—CEO Michael H. Davidson sold 443,707 shares (cutting his stake ~71.8%) and insiders sold ~1.17M shares worth $38.2M last quarter, while institutional investors own ~89.9% of the stock.

NewAmsterdam Pharma Company N.V. (NASDAQ:NAMS - Get Free Report) traded up 10.9% on Thursday following a better than expected earnings announcement. The stock traded as high as $34.09 and last traded at $34.3610. 1,492,429 shares were traded during trading, an increase of 78% from the average session volume of 839,821 shares. The stock had previously closed at $30.99.

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

Analyst Ratings Changes

Several research analysts recently issued reports on the stock. Royal Bank Of Canada upped their price target on shares of NewAmsterdam Pharma from $44.00 to $47.00 and gave the company an "outperform" rating in a research report on Wednesday, January 21st. Cantor Fitzgerald restated an "overweight" rating on shares of NewAmsterdam Pharma in a research report on Thursday, February 19th. Truist Financial started coverage on shares of NewAmsterdam Pharma in a research note on Wednesday, March 18th. They set a "buy" rating and a $57.00 price objective for the company. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of NewAmsterdam Pharma in a research note on Tuesday, April 21st. Finally, Needham & Company LLC upped their price objective on shares of NewAmsterdam Pharma from $46.00 to $48.00 and gave the company a "buy" rating in a research note on Wednesday, February 18th. One equities research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $48.00.

Insider Buying and Selling at NewAmsterdam Pharma

In other NewAmsterdam Pharma news, CEO Michael H. Davidson sold 443,707 shares of the firm's stock in a transaction that occurred on Monday, March 2nd. The shares were sold at an average price of $33.25, for a total transaction of $14,753,257.75. Following the completion of the transaction, the chief executive officer owned 174,144 shares of the company's stock, valued at approximately $5,790,288. This trade represents a 71.81% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Louis G. Lange sold 44,619 shares of the firm's stock in a transaction that occurred on Wednesday, March 11th. The shares were sold at an average price of $30.42, for a total transaction of $1,357,309.98. Following the transaction, the director directly owned 10,360 shares of the company's stock, valued at $315,151.20. This represents a 81.16% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 1,168,286 shares of company stock valued at $38,211,967. Corporate insiders own 20.84% of the company's stock.

Hedge Funds Weigh In On NewAmsterdam Pharma

Institutional investors and hedge funds have recently made changes to their positions in the business. Frazier Life Sciences Management L.P. increased its position in shares of NewAmsterdam Pharma by 1.4% during the fourth quarter. Frazier Life Sciences Management L.P. now owns 16,943,774 shares of the company's stock valued at $594,388,000 after acquiring an additional 241,818 shares in the last quarter. Capital World Investors boosted its holdings in NewAmsterdam Pharma by 1.6% in the fourth quarter. Capital World Investors now owns 9,984,000 shares of the company's stock worth $350,239,000 after purchasing an additional 161,289 shares during the last quarter. Jennison Associates LLC boosted its holdings in NewAmsterdam Pharma by 42.5% in the third quarter. Jennison Associates LLC now owns 4,198,554 shares of the company's stock worth $119,407,000 after purchasing an additional 1,252,451 shares during the last quarter. Wellington Management Group LLP boosted its holdings in NewAmsterdam Pharma by 21.0% in the third quarter. Wellington Management Group LLP now owns 4,020,126 shares of the company's stock worth $114,332,000 after purchasing an additional 697,129 shares during the last quarter. Finally, Adage Capital Partners GP L.L.C. boosted its holdings in NewAmsterdam Pharma by 54.5% in the second quarter. Adage Capital Partners GP L.L.C. now owns 3,013,009 shares of the company's stock worth $54,566,000 after purchasing an additional 1,062,359 shares during the last quarter. Institutional investors own 89.89% of the company's stock.

NewAmsterdam Pharma Stock Up 11.3%

The company's fifty day moving average is $31.79 and its 200-day moving average is $34.25. The company has a market cap of $3.97 billion, a PE ratio of -19.88 and a beta of 0.02.

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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