NewAmsterdam Pharma (NASDAQ:NAMS) Sets New 12-Month Low - Here's Why

Key Points

• NewAmsterdam Pharma shares fell to a new 52-week low of $20.04, down from a previous close of $21.25, with the stock trading below its 50-day and 200-day moving averages.
• Analysts remain broadly optimistic, with a “Moderate Buy” consensus rating and an average price target of $49.00, despite one target reduction and a recent quarterly EPS miss.
• The company continues to report significant losses while developing obicetrapib, its lead cholesterol-lowering candidate; insider activity was mixed, and institutional investors own nearly 90% of the stock.

NewAmsterdam Pharma Company N.V. (NASDAQ:NAMS - Get Free Report) reached a new 52-week low on Wednesday. The company traded as low as $20.04 and last traded at $20.19, with a volume of 989,284 shares traded. The stock had previously closed at $21.25.

Analyst Upgrades and Downgrades

Several analysts recently issued reports on the company. HC Wainwright reiterated a "buy" rating and set a $52.00 target price on shares of NewAmsterdam Pharma in a research report on Tuesday, September 8th. BMO Capital Markets began coverage on NewAmsterdam Pharma in a report on Monday, July 20th. They issued an "outperform" rating and a $58.00 price target on the stock. Royal Bank Of Canada lowered their price target on NewAmsterdam Pharma from $50.00 to $42.00 and set an "outperform" rating on the stock in a report on Monday, October 5th. Weiss Ratings restated a "sell (d-)" rating on shares of NewAmsterdam Pharma in a research note on Friday, July 17th. Finally, Jefferies Financial Group reaffirmed a "buy" rating and set a $45.00 price objective on shares of NewAmsterdam Pharma in a report on Monday, July 20th. One analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $49.00.

NewAmsterdam Pharma Stock Performance

The company has a market capitalization of $2.41 billion, a P/E ratio of -9.35 and a beta of 0.10. The business's fifty day simple moving average is $24.64 and its 200-day simple moving average is $29.82.

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

Insider Transactions at NewAmsterdam Pharma

In other news, CEO Michael H. Davidson purchased 10,000 shares of the company's stock in a transaction that occurred on Monday, September 14th. The stock was bought at an average cost of $22.65 per share, with a total value of $226,500.00. Following the completion of the purchase, the chief executive officer owned 792,923 shares in the company, valued at approximately $17,959,705.95. This represents a 1.28% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, insider Johannes Kastelein sold 50,246 shares of the firm's stock in a transaction that occurred on Wednesday, September 30th. The shares were sold at an average price of $25.03, for a total value of $1,257,657.38. Following the transaction, the insider owned 69,302 shares of the company's stock, valued at $1,734,629.06. This represents a 42.03% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 281,846 shares of company stock valued at $7,847,619. 12.74% of the stock is owned by company insiders.

Institutional Trading of NewAmsterdam Pharma

Hedge funds have recently modified their holdings of the company. Frazier Life Sciences Management L.P. grew its stake in shares of 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 worth $613,033,000 after buying an additional 1,145,128 shares in the last quarter. Maverick Capital Ltd. raised its position in shares of NewAmsterdam Pharma by 15.4% during the 1st quarter. Maverick Capital Ltd. now owns 2,186,402 shares of the company's stock valued at $69,987,000 after buying an additional 292,176 shares in the last quarter. Castle Hook Partners LP purchased a new stake in shares of NewAmsterdam Pharma during the 4th quarter valued at about $38,062,000. Bank of America Corp DE lifted its holdings in shares of NewAmsterdam Pharma by 84.4% in the 1st quarter. Bank of America Corp DE now owns 847,089 shares of the company's stock valued at $27,115,000 after acquiring an additional 387,698 shares during the last quarter. Finally, Artia Global Partners LP lifted its holdings in shares of NewAmsterdam Pharma by 158.6% in the 4th quarter. Artia Global Partners LP now owns 503,936 shares of the company's stock valued at $17,678,000 after acquiring an additional 309,098 shares during the last quarter. 89.89% of the stock is owned by hedge funds and other institutional investors.

NewAmsterdam Pharma Company Profile

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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