Biohaven (NYSE:BHVN) Shares Down 7.2% - Here's Why

Key Points

• Biohaven Ltd. (NYSE:BHVN) shares fell by 7.2% on Friday, reaching a low of $14.13, significantly below its previous closing price of $15.23.
• A range of brokerage firms have downgraded or adjusted their target prices for Biohaven, with Royal Bank of Canada lowering its target from $54.00 to $21.00.
• Despite the stock's recent struggles, analysts generally maintain a "Buy" rating with an average target price of $58.46, indicating optimism about the company's potential.

Biohaven Ltd. (NYSE:BHVN - Get Free Report)'s share price dropped 7.2% during trading on Friday . The company traded as low as $14.13 and last traded at $14.13. Approximately 429,743 shares were traded during trading, a decline of 74% from the average daily volume of 1,657,414 shares. The stock had previously closed at $15.23.

Wall Street Analyst Weigh In

BHVN has been the subject of a number of research analyst reports. William Blair upgraded Biohaven to a "strong-buy" rating in a report on Thursday, April 24th. JPMorgan Chase & Co. reduced their price target on Biohaven from $68.00 to $55.00 and set an "overweight" rating for the company in a report on Wednesday, June 18th. Royal Bank Of Canada cut Biohaven from an "outperform" rating to a "sector perform" rating and reduced their price target for the stock from $54.00 to $21.00 in a report on Monday, May 19th. Bank of America reduced their price target on Biohaven from $50.00 to $49.00 and set a "buy" rating for the company in a report on Tuesday. Finally, Morgan Stanley reduced their price target on Biohaven from $63.00 to $54.00 and set an "overweight" rating for the company in a report on Tuesday. One equities research analyst has rated the stock with a hold rating, twelve have given a buy rating and two have issued a strong buy rating to the company. Based on data from MarketBeat, the company presently has an average rating of "Buy" and an average target price of $54.54.

Biohaven Price Performance

The business's 50-day moving average price is $14.65 and its two-hundred day moving average price is $22.39. The company has a market capitalization of $1.37 billion, a price-to-earnings ratio of -1.43 and a beta of 0.98.

Biohaven (NYSE:BHVN - Get Free Report) last released its quarterly earnings results on Monday, August 11th. The company reported ($1.94) earnings per share for the quarter, meeting analysts' consensus estimates of ($1.94). As a group, research analysts predict that Biohaven Ltd. will post -8.9 EPS for the current year.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. Ameriprise Financial Inc. raised its position in Biohaven by 40.0% during the fourth quarter. Ameriprise Financial Inc. now owns 508,682 shares of the company's stock valued at $18,994,000 after purchasing an additional 145,331 shares in the last quarter. Alliancebernstein L.P. raised its position in Biohaven by 6.6% during the fourth quarter. Alliancebernstein L.P. now owns 96,236 shares of the company's stock valued at $3,594,000 after purchasing an additional 5,951 shares in the last quarter. LPL Financial LLC raised its position in Biohaven by 4.1% during the fourth quarter. LPL Financial LLC now owns 42,190 shares of the company's stock valued at $1,576,000 after purchasing an additional 1,664 shares in the last quarter. KBC Group NV raised its position in Biohaven by 35.0% during the first quarter. KBC Group NV now owns 4,560 shares of the company's stock valued at $110,000 after purchasing an additional 1,183 shares in the last quarter. Finally, Raymond James Financial Inc. acquired a new position in shares of Biohaven during the fourth quarter worth $1,384,000. 88.78% of the stock is currently owned by institutional investors and hedge funds.

About Biohaven

Biohaven Ltd., together with its subsidiaries, focuses on discovering, developing, and commercializing therapies for immunology, neuroscience, and oncology worldwide. The company's pipeline products include Troriluzole, which is in Phase 3 clinical trial for the treatment of neurological and neuropsychiatric illnesses; BHV-5500 that blocks glutamate signaling mediated by post-synaptic NMDA receptors; Taldefgrobep Alfa, which is in Phase 3 clinical trial for the treatment of spinal muscular atrophy and obesity; BHV-7000, a candidate in Phase 2/3 clinical trials for the treatment of focal and generalized epilepsy, bipolar disorder, and major depressive disorder; BHV-2100 that is in Phase 1 clinical trials for the treatment of migraines and neuropathic pain; and BHV-8000, a product candidate in Phase 1 clinical trials for the treatment of early Alzheimer's and Parkinson's disease, sclerosis, and amyloid-related imaging abnormalities.