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

Key Points

• NAMS hit a new 52-week low, trading as low as $19.00 and about 7% lower, despite recent positive company news.
• The European Commission approved obicetrapib products Ubeslo and Evlarco—the drug’s first worldwide regulatory approvals—while third-quarter results also beat expectations, with a $0.14-per-share loss and $19.16 million in revenue.
• The company remains loss-making, and investors will be watching whether it can turn the European approvals into sales; analysts’ average rating is “Moderate Buy,” with a $48.90 average price target.

NewAmsterdam Pharma Company N.V. (NASDAQ:NAMS - Get Free Report) hit a new 52-week low on Thursday. The stock traded as low as $19.00 and last traded at $19.8040, with a volume of 221,006 shares traded. The stock had previously closed at $20.93.

NewAmsterdam Pharma News Summary

Here are the key news stories impacting NewAmsterdam Pharma this week:

• Positive Sentiment: The European Commission approved Ubeslo (obicetrapib monotherapy) and Evlarco (obicetrapib plus ezetimibe), the first regulatory approvals worldwide for obicetrapib. The approvals mark a key regulatory milestone and open the door to European commercialization. Company announcement
• Positive Sentiment: Third-quarter results beat expectations: the company reported a loss of $0.14 per share versus the consensus estimate of a $0.47 loss, while revenue of $19.16 million exceeded estimates of $8.82 million. Reports also noted that the net loss narrowed and revenue grew year over year. Q3 results report
• Positive Sentiment: Stifel said it continues to view NAMS’ setup as “very compelling and significantly upside-biased,” signaling a favorable analyst view of the company’s prospects. Stifel analyst comments
• Negative Sentiment: Despite the earnings beat, NewAmsterdam remains loss-making, so investors may continue to focus on its ability to turn regulatory progress into sales and reduce ongoing losses.

Wall Street Analyst Weigh In

Several brokerages have recently issued reports on NAMS. BMO Capital Markets assumed coverage on shares of NewAmsterdam Pharma in a report on Monday, July 20th. They set an "outperform" rating and a $58.00 price target for the company. Jefferies Financial Group reaffirmed a "buy" rating and issued a $45.00 price objective on shares of NewAmsterdam Pharma in a report on Monday, July 20th. Wall Street Zen upgraded shares of NewAmsterdam Pharma from a "sell" rating to a "hold" rating in a research report on Sunday. HC Wainwright reissued a "buy" rating and set a $52.00 target price on shares of NewAmsterdam Pharma in a research note on Tuesday, September 8th. Finally, Weiss Ratings reissued a "sell (d-)" rating on shares of NewAmsterdam Pharma in a research note on Thursday, October 15th. One analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $48.90.

NewAmsterdam Pharma Trading Down 7.0%

The stock has a market capitalization of $2.33 billion, a price-to-earnings ratio of -9.08 and a beta of 0.15. The firm has a 50-day moving average of $22.43 and a 200 day moving average of $29.65.

NewAmsterdam Pharma (NASDAQ:NAMS - Get Free Report) last announced its quarterly earnings results on Wednesday, November 4th. The company reported ($0.14) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.47) by $0.33. 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 $19.16 million during the quarter, compared to analyst estimates of $8.82 million. Equities research analysts predict that NewAmsterdam Pharma Company N.V. will post -1.82 EPS for the current fiscal year.

Insider Activity at NewAmsterdam Pharma

In related news, Director John W. Smither sold 1,600 shares of the stock in a transaction dated 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 $221,803.20. This represents a 15.44% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, insider Johannes Kastelein sold 50,246 shares of the firm's stock in a transaction dated Wednesday, September 30th. The shares were sold at an average price of $25.03, for a total transaction of $1,257,657.38. Following the transaction, the insider directly owned 69,302 shares in the company, valued at approximately $1,734,629.06. The trade was a 42.03% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 176,846 shares of company stock worth $4,661,919 over the last ninety days. 12.74% of the stock is currently owned by corporate insiders.

Institutional Trading of NewAmsterdam Pharma

Hedge funds and other institutional investors have recently made changes to their positions in the stock. KBC Group NV acquired a new position in shares of NewAmsterdam Pharma during the 1st quarter valued at $37,000. Parallel Advisors LLC lifted its holdings in shares of NewAmsterdam Pharma by 43.7% in the third quarter. Parallel Advisors LLC now owns 2,012 shares of the company's stock valued at $49,000 after buying an additional 612 shares during the period. Mirae Asset Global Investments Co. Ltd. acquired a new stake in shares of NewAmsterdam Pharma in the third quarter valued at $149,000. PNC Financial Services Group Inc. lifted its holdings in shares of NewAmsterdam Pharma by 147.7% in the first quarter. PNC Financial Services Group Inc. now owns 9,119 shares of the company's stock valued at $292,000 after buying an additional 5,437 shares during the period. Finally, CenterBook Partners LP bought a new position in NewAmsterdam Pharma during the third quarter valued at about $290,000. 89.89% of the stock is currently owned by institutional investors.

About NewAmsterdam Pharma

NewAmsterdam Pharma NASDAQ: NAMS is a clinical-stage biopharmaceutical company focused on developing therapies for cardiometabolic diseases. The company's primary investigational product is obicetrapib, an oral, low-dose cholesteryl ester transfer protein (CETP) inhibitor designed to reduce low-density lipoprotein cholesterol and potentially address residual cardiovascular risk in patients who remain inadequately controlled on existing treatments.

NewAmsterdam is evaluating obicetrapib in late-stage clinical studies involving patients with dyslipidemia, including individuals with heterozygous familial hypercholesterolemia and patients who are unable to reach cholesterol goals with currently available therapies.

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