NewAmsterdam Pharma (NASDAQ:NAMS) Stock Falls 6.5% - What's Next?

Key Points

• NewAmsterdam Pharma shares fell 6.5% to about $20.17 in mid-day trading, with volume 77% below the average daily level. The stock remains below its 50-day and 200-day moving averages.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and a $48.90 target price, despite RBC lowering its target to $42.00.
• The company missed quarterly EPS expectations, reporting a loss of $0.52 per share versus a forecasted $0.48 loss, while revenue exceeded estimates. Insiders sold $4.66 million of shares over the past 90 days, although CEO Michael Davidson separately purchased 10,000 shares.

NewAmsterdam Pharma Company N.V. (NASDAQ:NAMS - Get Free Report) shares dropped 6.5% during mid-day trading on Friday. The company traded as low as $20.23 and last traded at $20.1740. Approximately 268,142 shares were traded during trading, a decline of 77% from the average daily volume of 1,144,579 shares. The stock had previously closed at $21.58.

Wall Street Analysts Forecast Growth

Several research analysts have commented on the company. Royal Bank Of Canada reduced their price objective on NewAmsterdam Pharma from $50.00 to $42.00 and set an "outperform" rating on the stock in a report on Monday, October 5th. HC Wainwright reissued a "buy" rating and set a $52.00 price objective on shares of NewAmsterdam Pharma in a report on Tuesday, September 8th. BMO Capital Markets started coverage on NewAmsterdam Pharma in a research note on Monday, July 20th. They set an "outperform" rating and a $58.00 price objective for the company. Weiss Ratings restated a "sell (d-)" rating on shares of NewAmsterdam Pharma in a report on Thursday, October 15th. Finally, Jefferies Financial Group reiterated a "buy" rating and set a $45.00 price objective on shares of NewAmsterdam Pharma in a research note on Monday, July 20th. One equities research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, NewAmsterdam Pharma currently has an average rating of "Moderate Buy" and a consensus target price of $48.90.

NewAmsterdam Pharma Price Performance

The firm's fifty day simple moving average is $23.68 and its 200 day simple moving average is $29.28. The company has a market capitalization of $2.37 billion, a PE ratio of -9.18 and a beta of 0.10.

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

Insider Transactions at NewAmsterdam Pharma

In other NewAmsterdam Pharma news, CEO Michael H. Davidson purchased 10,000 shares of the firm's stock in a transaction dated Monday, September 14th. The shares were purchased 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 position. The acquisition was disclosed in a document filed with the SEC, which is available through this link. Also, Director John W. Smither sold 1,600 shares of the firm's stock in a transaction that occurred on Friday, September 4th. The stock was sold at an average price of $25.32, for a total transaction of $40,512.00. Following the completion of the transaction, the director directly owned 8,760 shares in the company, valued at $221,803.20. This trade represents a 15.44% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 176,846 shares of company stock valued at $4,661,919 over the last 90 days. Corporate insiders own 12.74% of the company's stock.

Institutional Trading of NewAmsterdam Pharma

Several hedge funds have recently made changes to their positions in the company. KBC Group NV acquired a new position in NewAmsterdam Pharma in the first quarter valued at about $37,000. AdvisorNet Financial Inc purchased a new stake in NewAmsterdam Pharma during the 1st quarter worth approximately $82,000. PNC Financial Services Group Inc. lifted its holdings in NewAmsterdam Pharma by 147.7% during the 1st quarter. PNC Financial Services Group Inc. now owns 9,119 shares of the company's stock worth $292,000 after buying an additional 5,437 shares in the last quarter. AlphaCentric Advisors LLC grew its stake in shares of NewAmsterdam Pharma by 6.7% in the first quarter. AlphaCentric Advisors LLC now owns 14,656 shares of the company's stock worth $469,000 after acquiring an additional 925 shares in the last quarter. Finally, Arizona State Retirement System increased its position in shares of NewAmsterdam Pharma by 34.6% during the second quarter. Arizona State Retirement System now owns 16,656 shares of the company's stock worth $564,000 after acquiring an additional 4,281 shares during the period. Hedge funds and other institutional investors own 89.89% of the company's stock.

NewAmsterdam Pharma Company Profile

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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