Amgen stock price forecast for Q3 2021 after declaring dividend ahead of Q2 results

By: Motiur Rahman
Motiur Rahman
Md Motiur enjoys researching how companies are solving challenges the world will face over the coming decades. In his… read more.
on Jul 30, 2021
  • Amgen Friday declared a $1.76 dividend per share for Q3, in line with the previous two payments.
  • It will pay the dividend on 8th September to shareholders of record as of 17th August.
  • Amgen reports its fiscal Q3 results on 3rd August. Therefore, AMGN could get exciting next month.

Amgen Inc. (NASDAQ:AMGN) shares traded flat on Friday despite declaring a $1.76 Q3 dividend per share. The company will pay the dividend on 8th September to shareholders of record on 17th August. In addition, Amgen reports its fiscal Q2 results on 3rd August, and after missing analyst expectations on Q1 earnings, the stock price could be exciting going into August.

Based on the company’s closing price of $241.54 on Friday, it is now paying dividends at a forward yield of 2.91%. Analysts expect Amgen’s annual dividend per share to grow to $7.50 next year, up from $6.93 this year, before hitting $8.25 in the fiscal year 2023.

Should you invest in Amgen shares in Q3 2021?

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Amgen shares trade at an attractive P/E ratio of 20.08. In addition, its forward P/E ratio of just 13.46 will be compelling to value investors. However, analysts expect AMGN’s earnings to decline by 4.40% this year before increasing by 9.82% next year. Therefore, there could be some bottlenecks in the short term.

Nonetheless, investors can look forward to the generous compensation the company offers through dividend payments. Based on next year’s forecast annual dividend per share, Amgen could trade a yield of 3.09%, making it compelling to dividend investors.

Source – TradingView

Technical overview: why Amgen shares could bounce back ahead of Q2 results

Amgen stock is down 2.49% this week and nearly 15% off its yearly highs of $276.69, reached at the end of January. However, this week’s decline has pushed AMGN shares to the trendline support, creating an opportunity for a rebound.

Furthermore, given the dividend announcement and the upcoming earnings report, investors will be assessing ways to invest in the Thousand Oaks, CA-based biopharmaceuticals company.

Investors can target rebound profits at approximately $246.19 or higher at $250.11, while $237.16 and $233.62 are crucial support levels.

Bottom line: the case for buying AMGN stock price rebound

In summary, although Amgen earnings could decline this year before rising next year, the stock looks attractively valued. Furthermore, the recent pullback seems to be finding support off the trendline, creating an opportunity for a rebound. Therefore, the 3rd August earnings report could be the catalyst.

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