Harmony Biosciences (NASDAQ:HRMY) Shares Gap Down After Analyst Downgrade

Key Points

• Harmony Biosciences' shares gapped down significantly after Needham & Company LLC downgraded its price target from $48.00 to $41.00, opening at $29.92 compared to a previous close of $32.07.
• Despite the downgrade, Harmony Biosciences maintains a buy rating from Needham, and the stock has an average price target of $50.20 according to MarketBeat.
• The company reported weaker-than-expected earnings for the previous quarter, with an EPS of $0.68 vs. a consensus estimate of $0.78, and revenues of $200.49 million, below the forecast of $204.37 million.

Harmony Biosciences Holdings, Inc. (NASDAQ:HRMY - Get Free Report) shares gapped down prior to trading on Wednesday after Needham & Company LLC lowered their price target on the stock from $48.00 to $41.00. The stock had previously closed at $32.07, but opened at $29.92. Needham & Company LLC currently has a buy rating on the stock. Harmony Biosciences shares last traded at $28.85, with a volume of 544,575 shares trading hands.

A number of other brokerages also recently issued reports on HRMY. Truist Financial assumed coverage on Harmony Biosciences in a report on Monday, July 21st. They issued a "buy" rating and a $48.00 price target for the company. The Goldman Sachs Group assumed coverage on Harmony Biosciences in a report on Thursday, July 10th. They issued a "neutral" rating and a $33.00 price target for the company. Oppenheimer started coverage on Harmony Biosciences in a report on Monday, June 2nd. They issued an "outperform" rating and a $61.00 price target for the company. Wall Street Zen raised Harmony Biosciences from a "hold" rating to a "buy" rating in a report on Saturday. Finally, Deutsche Bank Aktiengesellschaft reissued a "buy" rating and issued a $55.00 price objective (up from $54.00) on shares of Harmony Biosciences in a report on Thursday, July 10th. One investment analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Buy" and an average price target of $50.20.

Hedge Funds Weigh In On Harmony Biosciences

Large investors have recently modified their holdings of the company. Financial Management Professionals Inc. purchased a new position in shares of Harmony Biosciences in the 1st quarter worth about $29,000. Brooklyn Investment Group grew its stake in Harmony Biosciences by 1,031.9% during the 1st quarter. Brooklyn Investment Group now owns 1,064 shares of the company's stock valued at $35,000 after purchasing an additional 970 shares in the last quarter. Parkside Financial Bank & Trust grew its position in shares of Harmony Biosciences by 4,185.2% in the 2nd quarter. Parkside Financial Bank & Trust now owns 1,157 shares of the company's stock worth $37,000 after acquiring an additional 1,130 shares in the last quarter. GF Fund Management CO. LTD. acquired a new position in shares of Harmony Biosciences in the 4th quarter worth approximately $41,000. Finally, Caitong International Asset Management Co. Ltd acquired a new position in Harmony Biosciences during the 1st quarter valued at approximately $57,000. 86.23% of the stock is currently owned by hedge funds and other institutional investors.

Harmony Biosciences Stock Down 12.4%

The firm has a market cap of $1.62 billion, a price-to-earnings ratio of 9.08, a price-to-earnings-growth ratio of 0.38 and a beta of 0.84. The company has a current ratio of 3.84, a quick ratio of 3.80 and a debt-to-equity ratio of 0.20. The stock has a 50-day moving average of $35.43 and a 200-day moving average of $33.51.

Harmony Biosciences (NASDAQ:HRMY - Get Free Report) last announced its earnings results on Tuesday, August 5th. The company reported $0.68 earnings per share for the quarter, missing the consensus estimate of $0.78 by ($0.10). The business had revenue of $200.49 million for the quarter, compared to the consensus estimate of $204.37 million. Harmony Biosciences had a net margin of 23.44% and a return on equity of 26.34%. The firm's revenue was up 16.0% on a year-over-year basis. During the same period in the previous year, the firm earned $1.05 EPS. Harmony Biosciences has set its FY 2025 guidance at EPS. As a group, sell-side analysts forecast that Harmony Biosciences Holdings, Inc. will post 2.43 EPS for the current fiscal year.

Harmony Biosciences Company Profile

Harmony Biosciences Holdings, Inc, a commercial-stage pharmaceutical company, focuses on developing and commercializing therapies for patients with rare and other neurological diseases in the United States. The company offers WAKIX (pitolisant), a molecule with a novel mechanism of action for the treatment of excessive daytime sleepiness in adult patients with narcolepsy.

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