Harmony Biosciences (NASDAQ:HRMY) Shares Gap Down Following Weak Earnings

Key Points

• Harmony Biosciences shares gapped down after quarterly results missed expectations — EPS $0.55 vs. $0.76 estimate and revenue $215.39M vs. $220.84M, though revenue was up 16.6% year-over-year.
• Several analysts cut ratings and price targets (Needham, UBS, Wall Street Zen, Truist), leaving a MarketBeat consensus of "Hold" with an average target price of $42.67.
• The company shows solid fundamentals with 86.23% institutional ownership, a market cap of $1.77B and a P/E of 11.17, but its 50-day moving average ($28.94) remains below the 200-day ($33.00), indicating recent weakness.

Harmony Biosciences Holdings, Inc. (NASDAQ:HRMY - Get Free Report) shares gapped down before the market opened on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $32.78, but opened at $28.95. Harmony Biosciences shares last traded at $30.5760, with a volume of 416,439 shares traded.

The company reported $0.55 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.76 by ($0.21). The company had revenue of $215.39 million for the quarter, compared to analyst estimates of $220.84 million. Harmony Biosciences had a return on equity of 19.86% and a net margin of 18.29%.The company's quarterly revenue was up 16.6% compared to the same quarter last year. During the same period in the prior year, the company earned $0.78 EPS.

Wall Street Analyst Weigh In

A number of equities research analysts have weighed in on HRMY shares. Needham & Company LLC reduced their target price on Harmony Biosciences from $46.00 to $44.00 and set a "buy" rating on the stock in a report on Wednesday, February 25th. Truist Financial downgraded Harmony Biosciences from a "buy" rating to a "hold" rating in a report on Monday, February 23rd. UBS Group dropped their price target on Harmony Biosciences from $46.00 to $36.00 and set a "neutral" rating for the company in a research note on Wednesday, February 25th. Mizuho set a $50.00 price target on Harmony Biosciences in a research note on Thursday, February 19th. Finally, Wall Street Zen cut Harmony Biosciences from a "buy" rating to a "hold" rating in a research note on Saturday, February 28th. One investment analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average target price of $42.67.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the business. EverSource Wealth Advisors LLC raised its position in shares of Harmony Biosciences by 589.9% in the 4th quarter. EverSource Wealth Advisors LLC now owns 752 shares of the company's stock worth $28,000 after acquiring an additional 643 shares in the last quarter. Allworth Financial LP raised its position in shares of Harmony Biosciences by 286.7% in the 4th quarter. Allworth Financial LP now owns 812 shares of the company's stock worth $30,000 after acquiring an additional 602 shares in the last quarter. Leonteq Securities AG bought a new position in shares of Harmony Biosciences in the 4th quarter worth about $30,000. National Bank of Canada FI bought a new position in shares of Harmony Biosciences in the 3rd quarter worth about $40,000. Finally, Clearstead Advisors LLC raised its position in shares of Harmony Biosciences by 145.9% in the 4th quarter. Clearstead Advisors LLC now owns 1,178 shares of the company's stock worth $44,000 after acquiring an additional 699 shares in the last quarter. 86.23% of the stock is owned by institutional investors.

Harmony Biosciences Stock Performance

The company has a 50-day moving average price of $28.94 and a two-hundred day moving average price of $33.00. The company has a current ratio of 3.60, a quick ratio of 3.58 and a debt-to-equity ratio of 0.17. The stock has a market capitalization of $1.77 billion, a P/E ratio of 11.17, a price-to-earnings-growth ratio of 0.44 and a beta of 0.97.

Harmony Biosciences Company Profile

Harmony Biosciences Holdings, Inc is a commercial‐stage biopharmaceutical company focused on developing and delivering therapies for people with rare neurological and endocrine diseases. Founded in 2017 and headquartered in Plymouth Meeting, Pennsylvania, Harmony Biosciences went public in 2020 and trades on the Nasdaq under the ticker HRMY. The company's mission centers on identifying and advancing medicines that address critical unmet needs in patient populations underserved by existing treatments.

The company's flagship product is WAKIX (pitolisant), the first and only histamine H3 receptor antagonist/inverse agonist approved by the U.S.

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