Why is Amgen stock sliding today?

HSBC downgraded Amgen (AMGN) from Buy to Hold, lowering the price target to $425. The company's dividend yield is 2.51% with a payout ratio of 44%, and a 3-year dividend growth rate of 7.1%. Amgen's GF Score is 86/100, reflecting strong profitability and growth. Insiders have sold $29.3M in shares, while the P/E ratio is 24.32x, near its 5-year median.

HSBC adjusted ratings for biopharma stocks, citing high multiples and the need for stock-specific catalysts. Novartis was upgraded to Hold with a target price of 110 CHF, while Amgen was downgraded to Hold with a target of $425. AbbVie and Bayer were kept as Buy with raised targets. The changes reflect expectations for upcoming clinical trials and legal outcomes.

Novartis (NVS) shares fell 13% after two failed clinical trials, one for a muscle loss disease drug and another for a cholesterol-targeting drug. Amgen (AMGN) shares dropped 9%, impacting the Dow, as it develops a similar cholesterol drug. Novartis expects 5-6% annual sales growth through 2030. Both companies' stocks were affected by the trial results.

AstraZeneca (AZN) and Amgen (AMGN) reported positive Phase III trial results for their co-developed asthma drug, TEZSPIRE. AZN's Q2 revenue rose 6% to $15.38B, with strong growth in Oncology and Rare Disease, while AMGN's revenue increased 10% to $10.1B but faced biosimilar pressure on mature products. AZN shows stronger EPS growth and portfolio momentum, while AMGN has robust key product growth and raised its 2026 revenue guidance.

Amgen's Imdelltra, in combination with AstraZeneca's Imfinzi, met all primary goals in a late-stage lung-cancer trial, showing improved survival and response rates. The study involved 563 patients, with no new safety concerns reported. Amgen's stock traded at $391.65, with investors awaiting survival data for a larger commercial assessment.

Novartis' late-stage trial for a cholesterol drug failed to prevent heart problems, despite lowering lp(a) levels, impacting Novartis and rivals like Amgen. Agco's CEO suggested potential year-round ethanol requirements, while PNC Financial's CIO warned of risks from Fed rate hikes. Diesel prices neared $6/gallon, and AI advancements were highlighted.