NewAmsterdam Pharma (NASDAQ:NAMS) Shares Gap Down - Should You Sell?

Key Points

• NewAmsterdam Pharma shares opened sharply lower, falling from a $25.40 prior close to $24.02 before recovering to about $25.32. The stock remains below its 50-day and 200-day moving averages.
• Analysts remain broadly optimistic, with a consensus “Moderate Buy” rating and an average price target of $49.73, despite RBC trimming its target to $50 and one analyst maintaining a sell rating.
• The company missed quarterly EPS expectations, reporting a loss of $0.52 per share versus the expected $0.48 loss, while revenue exceeded estimates. Insiders have sold 270,000 shares worth about $7.8 million over the past 90 days.

Shares of NewAmsterdam Pharma Company N.V. (NASDAQ:NAMS - Get Free Report) gapped down prior to trading on Tuesday . The stock had previously closed at $25.40, but opened at $24.02. NewAmsterdam Pharma shares last traded at $25.3180, with a volume of 638,772 shares changing hands.

Analyst Upgrades and Downgrades

Several equities research analysts have weighed in on the company. Royal Bank Of Canada cut their target price on NewAmsterdam Pharma from $51.00 to $50.00 and set an "outperform" rating for the company in a research note on Thursday, August 6th. Jefferies Financial Group restated a "buy" rating and set a $45.00 price objective on shares of NewAmsterdam Pharma in a research report on Monday, July 20th. BMO Capital Markets assumed coverage on NewAmsterdam Pharma in a research note on Monday, July 20th. They issued an "outperform" rating and a $58.00 price objective on the stock. HC Wainwright reiterated a "buy" rating and issued a $52.00 target price on shares of NewAmsterdam Pharma in a research report on Tuesday. Finally, Weiss Ratings reissued a "sell (d-)" rating on shares of NewAmsterdam Pharma in a research note on Friday, July 17th. One research analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating, one has given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $49.73.

NewAmsterdam Pharma Stock Performance

The business has a fifty day simple moving average of $29.51 and a 200-day simple moving average of $31.53. The firm has a market cap of $3.00 billion, a price-to-earnings ratio of -11.61 and a beta of 0.09.

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

Insider Activity at NewAmsterdam Pharma

In other news, insider Johannes Kastelein sold 125,000 shares of NewAmsterdam Pharma stock in a transaction on Monday, August 24th. The shares were sold at an average price of $26.91, for a total value of $3,363,750.00. Following the completion of the sale, the insider owned 69,302 shares in the company, valued at $1,864,916.82. The trade was a 64.33% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, CAO Louise Kooij sold 105,000 shares of NewAmsterdam Pharma stock in a transaction 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 sale, the chief accounting officer owned 24,353 shares of the company's stock, valued at $738,870.02. This represents a 81.17% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 270,000 shares of company stock valued at $7,757,450. Insiders own 12.74% of the company's stock.

Hedge Funds Weigh In On NewAmsterdam Pharma

Several institutional investors have recently made changes to their positions in the stock. California State Teachers Retirement System lifted its position in shares of NewAmsterdam Pharma by 4,105.5% during the second quarter. California State Teachers Retirement System now owns 2,284,796 shares of the company's stock worth $77,432,000 after acquiring an additional 2,230,467 shares in the last quarter. Frazier Life Sciences Management L.P. grew its position in shares of NewAmsterdam Pharma by 6.8% in the second 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. Duquesne Family Office LLC raised its stake in shares of NewAmsterdam Pharma by 131.2% during the 3rd quarter. Duquesne Family Office LLC now owns 1,923,700 shares of the company's stock valued at $54,710,000 after purchasing an additional 1,091,525 shares during the period. Castle Hook Partners LP bought a new stake in shares of NewAmsterdam Pharma during the 4th quarter valued at $38,062,000. Finally, Adage Capital Partners GP L.L.C. lifted its holdings in NewAmsterdam Pharma by 54.5% during the 2nd 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 in the last quarter. Institutional investors and hedge funds own 89.89% of the company's stock.

About NewAmsterdam Pharma

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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