Is Wall Street Bullish or Bearish on Amgen Stock?

On Tuesday, a Cantor analyst wrote that additional data from Amgen’s experimental weight loss injection, MariTide, suggests a new potential safety risk tied to the drug.

On Wednesday, Amgen Inc stated the MariTide (maridebart cafraglutide, formerly AMG 133) Phase 1 data, saying, “Amgen does not see an association between the administration of MariTide and bone mineral density (BMD) changes. The Phase 1 study results do not suggest any bone safety concerns or change our conviction in the promise of MariTide. We look forward to sharing the Phase 2 topline data later this year.”

CNBC highlighted that MariTide could be a strong new contender in the weight loss drug market. Unlike current weekly injections from Novo Nordisk A/S and Eli Lilly And Co , MariTide is taken once a month and works through a different mechanism.

Also Read: Jim Cramer Says Eli Lilly’s ‘Pathetic’ Stock Performance Could Get A Breather If Amgen Has Hidden Bone Risk Data After 7% Stock Drop

Analysts referred to new public data from a phase one study, showing that the highest dose of MariTide (420 milligrams) was associated with around 4% decrease in bone mineral density over 12 weeks.

Goldman Sachs responded that after reviewing the data, they do not believe it shows any safety issues.

Goldman Sachs says BMD measurements from DEXA scans and believes concerns about the data are not justified as there is no significant difference between the treatment and placebo, nor any clear dose-dependent effect in the DEXA data.

The analyst also says a study by Amgen’s deCODE genetics, which included data from 1.2 million people, found no link between obesity-related variants in the GIPR gene and a higher risk of fractures or lower BMD. It’s already well-established that rapid weight loss is linked to BMD loss.

William Blair notes that at lower doses of AMG 133 (140 mg and 280 mg), the reduction in bone mineral density is minimal, around 2% at most, which might not differ significantly from the placebo due to limited data in smaller groups.

While the 4% reduction stands out compared to typical reductions of 2% to 2.5%, bariatric surgery has been known to reduce BMD by 3% to 5% after six months.

MariTide, which leads to more significant weight loss over six months than semaglutide or liraglutide, may also result in greater BMD reductions due to this weight change.

Price Action: AMGN stock is up 1.39% at $302.98 at last check Wednesday.

Photo via Shutterstock

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Strange but true: seniors fear death less than running out of money in retirement.

And retirees have good reason to be worried about making their assets last. People are living longer, so that money has to cover a longer period. Making matters worse, income generated using tried-and-true retirement planning approaches may not cover expenses these days. That means seniors must dip into principal to meet living expenses.

The tried-and-true retirement investing approach of yesterday doesn't work today.

For example, 10-year Treasury bonds in the late 1990s offered a yield of around 6.50%, which translated to an income source you could count on. However, today's yield is much lower and probably not a viable return option to fund typical retirements.

The effect of this drop in rates is substantial: over 20 years, the change in yield for a $1 million investment in 10-year Treasuries is over $1 million.

And lower bond yields aren't the only potential problem seniors are facing. Today's retirees aren't feeling as secure as they once did about Social Security, either. Benefit checks will still be coming for the foreseeable future, but based on current estimates, Social Security funds will run out of money in 2035.

How can you avoid dipping into your principal when the investments you counted on in retirement aren't producing income? You can only cut your expenses so far, and the only other option is to find a different investment vehicle to generate income.

Invest in Dividend Stocks

As a replacement for low yielding Treasury bonds (and other bond options), we believe dividend-paying stocks from high quality companies offer low risk and stable, predictable income investors in retirement seek.

Look for stocks that have paid steady, increasing dividends for years (or decades), and have not cut their dividends even during recessions.

One approach to recognizing appropriate stocks is to look for companies with an average dividend yield of 3% and positive average annual dividend growth. Numerous stocks hike dividends over time, counterbalancing inflation risks.

Here are three dividend-paying stocks retirees should consider for their nest egg portfolio.

Amgen (AMGN)

is currently shelling out a dividend of $2.25 per share, with a dividend yield of 3.01%. This compares to the Medical - Biomedical and Genetics industry's yield of 0% and the S&P 500's yield of 1.47%. The company's annualized dividend growth in the past year was 5.63%. Check Amgen dividend history here>>>

First American Financial (FAF)

is paying out a dividend of $0.54 per share at the moment, with a dividend yield of 3.37% compared to the Insurance - Property and Casualty industry's yield of 0.13% and the S&P 500's yield. The annualized dividend growth of the company was 1.89% over the past year. Check First American Financial dividend history here>>>

Currently paying a dividend of $0.5 per share,

Portland General Electric (POR)

has a dividend yield of 4.24%. This is compared to the Utility - Electric Power industry's yield of 3.3% and the S&P 500's current yield. Annualized dividend growth for the company in the past year was 5.26%. Check Portland General Electric dividend history here>>>

But aren't stocks generally more risky than bonds?

Yes, that's true. As a broad category, bonds carry less risk than stocks. However, the stocks we are talking about - dividend -paying stocks from high-quality companies - can generate income over time and also mitigate the overall volatility of your portfolio compared to the stock market as a whole.

A silver lining to owning dividend stocks for your retirement portfolio is that many companies, especially blue chip stocks, increase their dividends over time, helping offset the effects of inflation on your potential retirement income.

Thinking about dividend-focused mutual funds or ETFs? Watch out for fees.

You may be thinking, "I like this dividend strategy, but instead of investing in individual stocks, I'm going to find a dividend-focused mutual fund or ETF." This approach can make sense, but be aware that some mutual funds and specialized ETFs carry high fees, which may reduce your dividend gains or income, and defeat the goal of this dividend investment approach. If you do wish to invest in a fund, do your research to find the best-quality dividend funds with the lowest fees.

Bottom Line

Pursuing a dividend investing strategy can help protect your retirement portfolio. Whether you choose to invest in stocks or through low-fee mutual funds or ETFs, this approach can potentially help you achieve a more secure and enjoyable retirement.

Zacks Investment Research

The broad market exchange-traded fund SPDR S&P 500 ETF Trust was down 0.1% and the actively traded Invesco QQQ Trust retreated 0.2% in Wednesday's premarket activity, ahead of the consumer price index report.

US stock futures were also lower, with S&P 500 Index futures down 0.1%, Dow Jones Industrial Average futures slipping 0.2%, and Nasdaq futures losing 0.3% before the start of regular trading.

Mortgage applications rose by 0.5% in the week ended Nov. 8 after a 10.8% decrease in the prior week, according to Mortgage Bankers Association data released Wednesday.

October's consumer price index report will be released at 8:30 am ET.

Dallas Federal Reserve President Lorie Logan speaks at 9:45 am ET, St. Louis Fed President Alberto Musalem at 1 pm ET, and Kansas City President Jeffrey Schmid at 1:30 pm ET.

In premarket activity, bitcoin was down by 2% and the cryptocurrency fund ProShares Bitcoin Strategy ETF was 2.1% lower.

Power Play:

Consumer

The Consumer Staples Select Sector SPDR Fund retreated 0,04%, while the Vanguard Consumer Staples Fund was inactive. The iShares US Consumer Staples ETF was inactive, and the Consumer Discretionary Select Sector SPDR Fund gained 0.1%. The VanEck Retail ETF was inactive, while the SPDR S&P Retail ETF was down by 1.6%.

Rivian Automotive shares were up more than 8% in premarket activity Wednesday, a day after the company said that Volkswagen Group will invest up to $5.8 billion into their expanded joint venture.

Winners and Losers:

Industrial

Industrial Select Sector SPDR Fund declined by 0.3% while the Vanguard Industrials Index Fund and the iShares US Industrials ETF (IYJ) were inactive.

V2X stock was down 4.6% before the opening bell after the company said late Tuesday that a certain selling stockholder priced an underwritten public stock offering at $61 per common share.

Technology

Technology Select Sector SPDR Fund retreated 0.4%, and the iShares US Technology ETF was down 0.2%, while the iShares Expanded Tech Sector ETF was inactive. Among semiconductor ETFs, SPDR S&P Semiconductor ETF was inactive, while the iShares Semiconductor ETF fell by 0.9%.

Super Micro Computer shares were down nearly 3.2% in recent Wednesday premarket activity after the company said that it could not file its quarterly report for the period ending Sept. 30 on time due to the need for more time to complete financial statements and disclosures.

Energy

The iShares US Energy ETF was down 0.5%, while the Energy Select Sector SPDR Fund was up by 0.1%.

Suncor Energy stock was up 3% before Wednesday's opening bell after the company reported forecast-beating Q3 adjusted operating earnings and revenue.

Health Care

The Health Care Select Sector SPDR Fund advanced 0.01%. The Vanguard Health Care Index Fund was up 0.2% while the iShares US Healthcare ETF was inactive. The iShares Biotechnology ETF was 0.1% higher.

Amgen stock was up 1.7% premarket after the company said it had found no connection between its potential once-monthly weight-loss injection MariTide and bone density loss.

Financial

Financial Select Sector SPDR Fund was down 0.2%. Direxion Daily Financial Bull 3X Shares declined by 0.5%, while its bearish counterpart Direxion Daily Financial Bear 3X Shares was 0.7% higher.

Hut 8 shares were up 1% pre-bell Wednesday after the company swung to Q3 earnings and reported higher revenue.

Commodities

Front-month US West Texas Intermediate crude oil gained 0.2% to reach $68.23 per barrel on the New York Mercantile Exchange. Natural gas declined by 1.3% to $2.87 per 1 million British Thermal Units. United States Oil Fund advanced 0.3%, while the United States Natural Gas Fund was down by 1.9%.

Gold futures for December were up 0.4% at $2,617.50 an ounce on the Comex, while silver futures advanced 0.9% to $31.04 an ounce. SPDR Gold Shares increased by 0.4%, and iShares Silver Trust was 0.5% higher.