Biohaven (NYSE:BHVN) Trading Down 7.7% After Analyst Downgrade

Key Points

• Shares dropped 7.7% midday after Royal Bank of Canada trimmed its price target from $23 to $22 (still an "outperform"); the stock fell as low as $9.53 and last traded near $9.36 on volume of ~1.93M vs. an average of ~2.41M.
• Analysts remain broadly constructive with a consensus rating of "Moderate Buy" and a consensus target price of $22.47, supported by multiple Buy/Strong Buy notes despite mixed individual ratings.
• Institutional ownership is high at 88.78%, with several large funds (Suvretta, Infinitum, Stifel, Vanguard) materially increasing Q4 stakes; the company has a market cap of $1.46B and is projected to post negative EPS (~-2.98) for the year.

Biohaven Ltd. (NYSE:BHVN - Get Free Report) shares fell 7.7% during mid-day trading on Tuesday after Royal Bank Of Canada lowered their price target on the stock from $23.00 to $22.00. Royal Bank Of Canada currently has an outperform rating on the stock. Biohaven traded as low as $9.53 and last traded at $9.3560. 1,925,450 shares were traded during trading, a decline of 20% from the average session volume of 2,405,752 shares. The stock had previously closed at $10.14.

A number of other research analysts have also weighed in on BHVN. Raymond James Financial reissued a "strong-buy" rating on shares of Biohaven in a research note on Monday, March 9th. The Goldman Sachs Group upgraded Biohaven to a "strong-buy" rating in a research note on Friday, February 6th. Leerink Partners reiterated an "outperform" rating and issued a $15.00 target price on shares of Biohaven in a research note on Tuesday, March 3rd. Canaccord Genuity Group assumed coverage on Biohaven in a research note on Monday, April 13th. They issued a "buy" rating and a $21.00 target price for the company. Finally, Wall Street Zen lowered Biohaven from a "sell" rating to a "strong sell" rating in a research note on Sunday, April 26th. Three analysts have rated the stock with a Strong Buy rating, nine have given a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $22.47.

Hedge Funds Weigh In On Biohaven

A number of large investors have recently bought and sold shares of BHVN. Suvretta Capital Management LLC raised its stake in Biohaven by 83.0% during the fourth quarter. Suvretta Capital Management LLC now owns 10,286,937 shares of the company's stock worth $116,140,000 after purchasing an additional 4,666,666 shares during the period. Infinitum Asset Management LLC raised its stake in Biohaven by 267.6% during the fourth quarter. Infinitum Asset Management LLC now owns 6,250,000 shares of the company's stock worth $70,562,000 after purchasing an additional 4,550,000 shares during the period. Stifel Financial Corp raised its stake in Biohaven by 50.3% during the fourth quarter. Stifel Financial Corp now owns 9,939,856 shares of the company's stock worth $112,221,000 after purchasing an additional 3,328,506 shares during the period. Schonfeld Strategic Advisors LLC raised its stake in Biohaven by 3,829.9% during the fourth quarter. Schonfeld Strategic Advisors LLC now owns 1,606,777 shares of the company's stock worth $18,141,000 after purchasing an additional 1,565,891 shares during the period. Finally, Vanguard Group Inc. raised its stake in Biohaven by 52.9% during the fourth quarter. Vanguard Group Inc. now owns 4,395,946 shares of the company's stock worth $49,630,000 after purchasing an additional 1,520,756 shares during the period. Hedge funds and other institutional investors own 88.78% of the company's stock.

Biohaven Stock Performance

The company has a quick ratio of 3.18, a current ratio of 3.18 and a debt-to-equity ratio of 4.59. The company has a market cap of $1.46 billion, a PE ratio of -1.38 and a beta of 1.32. The stock's 50 day simple moving average is $9.91 and its two-hundred day simple moving average is $11.07.

Biohaven (NYSE:BHVN - Get Free Report) last posted its quarterly earnings results on Monday, March 2nd. The company reported ($1.21) earnings per share for the quarter, topping analysts' consensus estimates of ($1.22) by $0.01. As a group, research analysts anticipate that Biohaven Ltd. will post -2.98 earnings per share for the current year.

Biohaven Company Profile

Biohaven Ltd. (NYSE BHVN) is a clinical-stage biopharmaceutical company dedicated to developing and commercializing therapies for neurological and neurovascular diseases. Founded in 2013 as a spin-out from Yale University, Biohaven focuses on addressing high-unmet medical needs through innovative small-molecule and peptide-based platforms. The company is headquartered in New Haven, Connecticut, and maintains research activities across the United States, with collaborative ties in Europe and Asia via strategic partnerships.

The company's most advanced program centers on calcitonin gene-related peptide (CGRP) receptor antagonists for the acute and preventive treatment of migraine.

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