Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Amgen, Esperion, AmTrust Financial and More: What is Going On With These Falling Stocks?

Page 1 of 2

Although all three major indexes have rebounded into the green this afternoon, shares of five companies, Amgen, Inc. (NASDAQ:AMGN), Esperion Therapeutics Inc (NASDAQ:ESPR), The Medicines Company (NASDAQ:MDCO), AmTrust Financial Services Inc (NASDAQ:AFSI), and Bank of America Corp (NYSE:BAC) are in the red. In this article, let’s find out what is causing each stock to fall and analyze elite fund sentiment towards them.

At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 39.7% gains over the past 12 months and outperformed the 24.1% gain enjoyed by the S&P 500 ETFs. Our enhanced small-cap hedge fund strategy returned more than 45% over the last 12 months and outperformed SPY by more than 30 percentage points over the last 4.5 years (see details here).

Abbvie ABBV biopharmaceuticals cell blood dna gene stem test biotech research

RAJ CREATIONZS / shutterstock.com

Amgen, Inc. (NASDAQ:AMGN) has fallen more than 6% after the company released the results from the FOURIER study of Repatha. Although the study met the key endpoint, expectations of risk reduction (of 20-22% versus placebo versus the actual result of 15%) were apparently higher for the cholesterol lowering drug. Given that Repatha is a very expensive drug, many thought the results had to be very convincing, rather than just convincing for the drug to be a market success. Due to the news, Michael Yee of RBC Capital thinks Amgen shares might not rally in the short term, but will eventually grind back higher over time. Of the 742 elite funds we track, 60 funds owned $1.96 billion of Amgen, Inc. (NASDAQ:AMGN) and accounted for 1.80% of the float on December 31, versus 59 funds and $1.86 billion respectively on September 30.

Follow Amgen Inc (NASDAQ:AMGN)
Trade (NASDAQ:AMGN) Now!

Esperion Therapeutics Inc (NASDAQ:ESPR) and The Medicines Company (NASDAQ:MDCO) are both down due to the previously mentioned Amgen news. Both companies are trying to bring drugs that reduce cardiovascular disease to the market. Both companies have also been defended by analysts today. In terms of Esperion, Chad Messer of Needham thinks the sell-off is unwarranted as he thinks the company’s Bempedoic acid will be lower priced, and thus less comparable to Repatha. Meanwhile, Joseph Schwartz of Leerink reaffirms his ‘Outperform’ rating on The Medicine Co, citing Repatha’s clear clinical benefit, which could potentially lead to inclisiran being clinically successful as well. 8 and 23 elite funds were long Esperion Therapeutics Inc (NASDAQ:ESPR) and The Medicines Company (NASDAQ:MDCO) at the end of December, respectively.

Follow Esperion Therapeutics Inc. (NASDAQ:ESPR)
Trade (NASDAQ:ESPR) Now!

Follow Medicines Co (NASDAQ:MDCO)
Trade (NASDAQ:MDCO) Now!

On the next page, we find out why AmTrust Financial Services Inc and Bank of America Corp are in the red.

Page 1 of 2