Amgen Inc. (AMGN) is currently experiencing significant bullish momentum, driven by strong financial performance, a robust drug pipeline, and favorable investor sentiment. A recent options trade involving the sale of 1,000 put contracts for a substantial premium highlights a prevailing confidence in the company's stock stability and growth potential. This positive outlook is further reinforced by impressive quarterly results and the anticipated success of key therapeutic developments, positioning Amgen as an attractive prospect in the biotechnology sector. Investors are increasingly viewing AMGN as a growth-oriented leader rather than a traditional dividend stock, with its current valuation presenting a compelling entry point for long-term gains.
The bullish sentiment surrounding Amgen is underpinned by several key factors. On February 24th, Amgen's shares were trading at $382.87, with trailing and forward P/E ratios of 24.32 and 13.74, respectively, according to Yahoo Finance. A notable options transaction involved a trader selling 1,000 June 18, 2026, $340 put contracts for $9.00 each, generating $900,000 in premium. With the stock price around $376 on February 23, 2026, this strike price provides a nearly 10% buffer against assignment risk, indicating strong conviction in the stock's stability.
Amgen's financial performance further supports this positive outlook. The company reported a better-than-expected fourth-quarter performance and raised its 2026 revenue guidance to approximately $38.4 billion, signaling accelerating momentum. Growth drivers include a 44% increase in sales of Repatha, a cholesterol-lowering medication, and the anticipated Phase 3 data for MariTide, its promising obesity candidate. These developments suggest a strategic shift for Amgen, moving beyond its traditional role as a defensive dividend stock to embrace a more aggressive, growth-oriented biotech leadership position.
The options trade's premium effectively lowers the break-even price to $331. Based on management's midpoint 2026 EPS guidance of $22.30, Amgen currently trades at approximately 17 times forward earnings. If assigned at $331, the entry multiple would be closer to 14.8 times. This valuation is considered highly attractive for a large-cap biotech company with diverse revenue streams, robust cash flow generation, and an expanding pipeline. The time decay inherent in options further benefits the put seller, as the value of the sold puts diminishes over time, especially if shares remain stable or trend upward toward analyst targets of around $440. Amgen's strong balance sheet, boasting approximately $9.1 billion in cash, and a 2.6% dividend yield, provide both financial resilience and potential upside, particularly given its strong position in the burgeoning obesity market.
This optimistic perspective echoes a previous bullish thesis on Amgen Inc. (AMGN) from May 2025, which highlighted the company's strong earnings growth, the potential of the MariTide pipeline, and its undervalued status. Since that earlier assessment, AMGN's stock price has appreciated by approximately 36.41%, demonstrating the validity of these positive projections. The current analysis, while sharing similar views, places additional emphasis on the strategic options market positioning and the fundamental improvements that contribute to a solid valuation floor for the company.
In summary, Amgen Inc. demonstrates robust financial health and strong growth prospects, making it an appealing investment. The recent bullish options activity and the company's strong quarterly results underscore a favorable market sentiment, which is further bolstered by the success of its current products and the significant potential of its developmental pipeline, especially in areas like obesity treatment. With a solid balance sheet and an attractive valuation, Amgen appears well-positioned for continued appreciation, transitioning into a dynamic leader within the biotechnology sector.