Harrow (NASDAQ:HROW) Shares Gap Down After Earnings Miss

Key Points

• Harrow shares opened lower after the company reported quarterly EPS of ($0.34), missing the consensus estimate of ($0.18); revenue of $70.66 million slightly exceeded expectations.
• Analyst sentiment remains mixed but broadly positive, with eight Buy ratings, two Holds and one Sell, producing a “Moderate Buy” consensus and an average price target of $69.43.
• Company insiders recently bought shares, while institutional investors own 72.76% of Harrow and insiders hold 12.80%.

Harrow, Inc. (NASDAQ:HROW - Get Free Report)'s share price gapped down prior to trading on Tuesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $40.70, but opened at $39.00. Harrow shares last traded at $39.2740, with a volume of 277,108 shares traded.

The company reported ($0.34) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.18) by ($0.16). Harrow had a positive return on equity of 19.59% and a negative net margin of 5.57%.The company had revenue of $70.66 million for the quarter, compared to the consensus estimate of $70.35 million.

Wall Street Analyst Weigh In

A number of research analysts recently weighed in on the stock. Wall Street Zen lowered shares of Harrow from a "hold" rating to a "sell" rating in a research report on Saturday, May 16th. Cantor Fitzgerald reduced their price objective on shares of Harrow from $91.00 to $88.00 and set an "overweight" rating for the company in a research report on Wednesday, May 13th. Weiss Ratings reiterated a "sell (e+)" rating on shares of Harrow in a research note on Monday, July 20th. Finally, BTIG Research reissued a "buy" rating and set a $63.00 target price on shares of Harrow in a research report on Tuesday, July 21st. Eight analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $69.43.

Insider Activity

In related news, CFO Andrew R. Boll purchased 3,500 shares of the firm's stock in a transaction dated Thursday, May 14th. The shares were purchased at an average cost of $29.90 per share, for a total transaction of $104,650.00. Following the completion of the transaction, the chief financial officer directly owned 814,679 shares in the company, valued at approximately $24,358,902.10. This represents a 0.43% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available through this hyperlink. Also, Director Adrienne L. Graves bought 1,000 shares of the stock in a transaction on Monday, May 18th. The stock was purchased at an average price of $31.07 per share, for a total transaction of $31,070.00. Following the completion of the purchase, the director directly owned 1,000 shares in the company, valued at approximately $31,070. This represents a ∞ increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. 12.80% of the stock is owned by company insiders.

Institutional Investors Weigh In On Harrow

Several hedge funds have recently bought and sold shares of HROW. University of Texas Texas AM Investment Management Co. bought a new position in shares of Harrow in the 4th quarter worth $26,000. KBC Group NV bought a new stake in shares of Harrow during the 1st quarter worth $31,000. Raymond James Financial Inc. purchased a new position in Harrow in the second quarter worth $48,000. SBI Securities Co. Ltd. lifted its stake in Harrow by 393.5% during the fourth quarter. SBI Securities Co. Ltd. now owns 1,061 shares of the company's stock worth $52,000 after purchasing an additional 846 shares during the last quarter. Finally, State of Wyoming bought a new stake in Harrow during the second quarter worth about $72,000. 72.76% of the stock is currently owned by institutional investors.

Harrow Price Performance

The business has a fifty day moving average price of $40.47 and a 200-day moving average price of $40.02. The company has a current ratio of 2.48, a quick ratio of 2.30 and a debt-to-equity ratio of 10.30. The stock has a market capitalization of $1.48 billion, a PE ratio of -97.08 and a beta of 0.28.

Harrow Company Profile

Harrow Health, Inc NASDAQ: HROW is a U.S.-based commercial-stage biopharmaceutical company specializing in ophthalmic therapeutics and diagnostics. The company focuses on the development, manufacturing and distribution of proprietary, generic and branded eye care products designed to treat a range of ocular conditions, including glaucoma, ocular hypertension, dry eye disease and other anterior segment disorders.

Through its wholly owned affiliate ImprimisRx, Harrow Health offers a direct-to-physician model for customized formulations as well as low-cost generic alternatives.

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