NewAmsterdam Pharma (NASDAQ:NAMS) Hits New 52-Week Low - Time to Sell?

Key Points

• NewAmsterdam Pharma shares fell to a new 52-week low of $20.95, below its 50-day and 200-day moving averages. The company reported a quarterly EPS loss of $0.52, missing estimates, despite revenue exceeding expectations.
• Analyst sentiment remains broadly positive, with a “Moderate Buy” consensus and an average price target of $49.00—well above the recent trading price—though one firm maintains a sell rating and RBC recently cut its target to $42.
• Insiders sold significant holdings, including 281,846 shares worth $7.85 million over the past 90 days, while institutional investors and hedge funds own 89.89% of the stock. NewAmsterdam is a clinical-stage biotech developing obicetrapib for cholesterol and cardiovascular-risk reduction.

NewAmsterdam Pharma Company N.V. (NASDAQ:NAMS - Get Free Report)'s share price reached a new 52-week low during mid-day trading on Thursday. The company traded as low as $20.95 and last traded at $21.1560, with a volume of 543745 shares trading hands. The stock had previously closed at $22.13.

Analysts Set New Price Targets

Several research analysts recently commented on the company. Jefferies Financial Group reissued a "buy" rating and issued a $45.00 price objective on shares of NewAmsterdam Pharma in a research note on Monday, July 20th. BMO Capital Markets began coverage on shares of NewAmsterdam Pharma in a research note on Monday, July 20th. They issued an "outperform" rating and a $58.00 target price on the stock. HC Wainwright reaffirmed a "buy" rating and issued a $52.00 price target on shares of NewAmsterdam Pharma in a report on Tuesday, September 8th. Royal Bank Of Canada lowered their price objective on NewAmsterdam Pharma from $50.00 to $42.00 and set an "outperform" rating on the stock in a research note on Monday. Finally, Weiss Ratings restated a "sell (d-)" rating on shares of NewAmsterdam Pharma in a report on Friday, July 17th. One research analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, one has issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, NewAmsterdam Pharma has an average rating of "Moderate Buy" and an average target price of $49.00.

NewAmsterdam Pharma Price Performance

The company has a market cap of $2.52 billion, a PE ratio of -9.76 and a beta of 0.10. The company's 50 day simple moving average is $25.18 and its two-hundred day simple moving average is $30.07.

NewAmsterdam Pharma (NASDAQ:NAMS - Get Free Report) last announced its earnings results on Wednesday, August 5th. The company reported ($0.52) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.48) by ($0.04). The firm had revenue of $3.70 million during the quarter, compared to analysts' expectations of $2.83 million. NewAmsterdam Pharma had a negative net margin of 3,644.21% and a negative return on equity of 34.81%. Sell-side analysts expect that NewAmsterdam Pharma Company N.V. will post -1.82 EPS for the current fiscal year.

Insider Transactions at NewAmsterdam Pharma

In related news, Director John W. Smither sold 1,600 shares of NewAmsterdam Pharma stock in a transaction that occurred on Friday, September 4th. The shares were sold at an average price of $25.32, for a total value of $40,512.00. Following the completion of the transaction, the director owned 8,760 shares in the company, valued at approximately $221,803.20. The trade was a 15.44% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CAO Louise Kooij sold 105,000 shares of the firm's stock in a transaction that occurred on Monday, July 20th. The shares were sold at an average price of $30.34, for a total transaction of $3,185,700.00. Following the completion of the transaction, the chief accounting officer directly owned 24,353 shares of the company's stock, valued at $738,870.02. This represents a 81.17% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders sold 281,846 shares of company stock valued at $7,847,619. 12.74% of the stock is owned by insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the stock. Frazier Life Sciences Management L.P. raised its position in NewAmsterdam Pharma by 6.8% in the 2nd quarter. Frazier Life Sciences Management L.P. now owns 18,088,902 shares of the company's stock valued at $613,033,000 after purchasing an additional 1,145,128 shares in the last quarter. Maverick Capital Ltd. increased its stake in shares of NewAmsterdam Pharma by 15.4% during the first quarter. Maverick Capital Ltd. now owns 2,186,402 shares of the company's stock worth $69,987,000 after buying an additional 292,176 shares during the period. Castle Hook Partners LP acquired a new stake in NewAmsterdam Pharma in the fourth quarter valued at approximately $38,062,000. First Turn Management LLC lifted its stake in NewAmsterdam Pharma by 24.6% in the fourth quarter. First Turn Management LLC now owns 893,473 shares of the company's stock worth $31,343,000 after acquiring an additional 176,502 shares during the last quarter. Finally, Bank of America Corp DE lifted its stake in NewAmsterdam Pharma by 84.4% in the first quarter. Bank of America Corp DE now owns 847,089 shares of the company's stock worth $27,115,000 after acquiring an additional 387,698 shares during the last quarter. 89.89% of the stock is owned by institutional investors and hedge funds.

About NewAmsterdam Pharma

NewAmsterdam Pharma is a clinical-stage biopharmaceutical company focused on developing therapies for cardiometabolic diseases, with an emphasis on improving the treatment of dyslipidemia and reducing cardiovascular risk. The company's lead investigational product is obicetrapib, an oral cholesteryl ester transfer protein (CETP) inhibitor designed to lower low-density lipoprotein cholesterol and potentially address other lipid-related abnormalities.

Obicetrapib is being studied as an adjunct to existing lipid-lowering therapies, including in patients who have not achieved adequate cholesterol control and people with heterozygous familial hypercholesterolemia.

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