Day One Biopharmaceuticals (NASDAQ:DAWN) Trading Down 5.5% - Time to Sell?

Key Points

• Day One Biopharmaceuticals shares fell 5.5% to $7.52, with a significant decline in trading volume compared to average sessions.
• Analysts have issued mixed ratings, with Needham & Company lowering its target price from $18.00 to $16.00 while others maintain a "buy" rating.
• The company reported earnings of ($0.29) per share, surpassing analysts' expectations but falling short of revenue projections at $33.91 million for the quarter.

Shares of Day One Biopharmaceuticals, Inc. (NASDAQ:DAWN - Get Free Report) traded down 5.5% during mid-day trading on Monday . The company traded as low as $7.60 and last traded at $7.52. 560,373 shares traded hands during trading, a decline of 59% from the average session volume of 1,351,890 shares. The stock had previously closed at $7.95.

Analyst Upgrades and Downgrades

DAWN has been the subject of a number of recent analyst reports. Needham & Company LLC lowered their target price on shares of Day One Biopharmaceuticals from $18.00 to $16.00 and set a "buy" rating for the company in a research note on Wednesday, August 6th. Weiss Ratings reissued a "sell (e+)" rating on shares of Day One Biopharmaceuticals in a report on Saturday, September 27th. HC Wainwright reduced their price target on Day One Biopharmaceuticals from $36.00 to $25.00 and set a "buy" rating for the company in a research report on Wednesday, August 6th. Finally, Piper Sandler began coverage on shares of Day One Biopharmaceuticals in a research note on Monday, August 18th. They issued an "overweight" rating and a $25.00 target price for the company. One equities research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $25.29.

Day One Biopharmaceuticals Stock Down 8.2%

The firm has a market capitalization of $747.74 million, a PE ratio of -7.68 and a beta of -1.26. The stock has a 50-day moving average price of $6.97 and a 200 day moving average price of $6.95.

Day One Biopharmaceuticals (NASDAQ:DAWN - Get Free Report) last released its quarterly earnings results on Tuesday, August 5th. The company reported ($0.29) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.35) by $0.06. The firm had revenue of $33.91 million for the quarter, compared to analysts' expectations of $35.55 million. Day One Biopharmaceuticals had a negative net margin of 50.63% and a negative return on equity of 19.01%. As a group, equities analysts predict that Day One Biopharmaceuticals, Inc. will post -0.72 earnings per share for the current fiscal year.

Insider Buying and Selling at Day One Biopharmaceuticals

In other Day One Biopharmaceuticals news, CFO Charles N. York II sold 4,106 shares of the stock in a transaction dated Monday, August 18th. The shares were sold at an average price of $6.77, for a total value of $27,797.62. Following the completion of the sale, the chief financial officer owned 278,000 shares in the company, valued at approximately $1,882,060. This represents a 1.46% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Lauren Merendino sold 3,766 shares of the business's stock in a transaction dated Monday, August 18th. The shares were sold at an average price of $6.77, for a total transaction of $25,495.82. Following the completion of the transaction, the insider owned 41,931 shares in the company, valued at $283,872.87. The trade was a 8.24% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 28,295 shares of company stock worth $191,557 over the last three months. 6.20% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Day One Biopharmaceuticals

Institutional investors have recently made changes to their positions in the stock. Hudson Bay Capital Management LP boosted its position in shares of Day One Biopharmaceuticals by 12.7% during the 2nd quarter. Hudson Bay Capital Management LP now owns 1,296,700 shares of the company's stock worth $8,429,000 after purchasing an additional 146,300 shares during the period. Vestal Point Capital LP boosted its position in shares of Day One Biopharmaceuticals by 15.5% during the second quarter. Vestal Point Capital LP now owns 3,000,000 shares of the company's stock worth $19,500,000 after buying an additional 401,873 shares during the period. Man Group plc grew its stake in shares of Day One Biopharmaceuticals by 46.1% in the second quarter. Man Group plc now owns 56,862 shares of the company's stock valued at $370,000 after buying an additional 17,950 shares in the last quarter. Lazard Asset Management LLC purchased a new stake in shares of Day One Biopharmaceuticals in the 2nd quarter valued at $89,000. Finally, Bayesian Capital Management LP raised its holdings in shares of Day One Biopharmaceuticals by 56.1% in the 2nd quarter. Bayesian Capital Management LP now owns 28,100 shares of the company's stock valued at $183,000 after buying an additional 10,100 shares during the period. 87.95% of the stock is currently owned by institutional investors and hedge funds.

About Day One Biopharmaceuticals

Day One Biopharmaceuticals, Inc, a clinical-stage biopharmaceutical company, develops and commercializes targeted therapies for patients with genomically defined cancers. Its lead product candidate is tovorafenib, an oral brain-penetrant type II pan-rapidly accelerated fibrosarcoma kinase inhibitor that is in Phase II clinical trial for pediatric patients with relapsed/ refractory low-grade glioma.

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