Heron Therapeutics (NASDAQ:HRTX) Rating Increased to Strong Sell at Zacks Research

Key Points

• Heron Therapeutics has been downgraded to a "strong sell" rating by Zacks Research, amidst mixed signals from other analysts who have set both buy and hold ratings.
• The company's shares are currently trading at $1.35, with recent earnings missing consensus estimates, leading to concerns about its financial performance.
• Major shareholder Rubric Capital Management increased their stake significantly by purchasing over 2.3 million shares, reflecting confidence in the company's long-term prospects despite its recent struggles.

Heron Therapeutics (NASDAQ:HRTX - Get Free Report) was upgraded by stock analysts at Zacks Research to a "strong sell" rating in a research note issued to investors on Tuesday,Zacks.com reports.

HRTX has been the topic of several other reports. HC Wainwright started coverage on shares of Heron Therapeutics in a report on Monday, June 9th. They issued a "buy" rating and a $6.00 price objective on the stock. Needham & Company LLC decreased their price objective on shares of Heron Therapeutics from $4.00 to $3.00 and set a "buy" rating on the stock in a report on Friday, August 8th. Finally, Wall Street Zen downgraded shares of Heron Therapeutics from a "buy" rating to a "hold" rating in a report on Saturday, August 9th.

Heron Therapeutics Trading Down 3.6%

Shares of HRTX opened at $1.35 on Tuesday. The company has a market cap of $206.94 million, a price-to-earnings ratio of -67.50 and a beta of 1.15. Heron Therapeutics has a 1-year low of $1.04 and a 1-year high of $2.68. The company's fifty day simple moving average is $1.94 and its 200 day simple moving average is $2.00.

Heron Therapeutics (NASDAQ:HRTX - Get Free Report) last issued its earnings results on Friday, August 8th. The biotechnology company reported ($0.02) earnings per share for the quarter, missing analysts' consensus estimates of ($0.01) by ($0.01). The company had revenue of $37.20 million for the quarter, compared to analyst estimates of $38.08 million. As a group, research analysts forecast that Heron Therapeutics will post -0.13 earnings per share for the current year.

Insider Activity

In other news, major shareholder Rubric Capital Management Lp acquired 2,387,225 shares of the business's stock in a transaction that occurred on Friday, August 8th. The stock was acquired at an average price of $1.50 per share, with a total value of $3,580,837.50. Following the completion of the transaction, the insider directly owned 29,100,728 shares of the company's stock, valued at $43,651,092. This trade represents a 8.94% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Adam Morgan acquired 1,766,546 shares of the business's stock in a transaction that occurred on Friday, August 8th. The shares were purchased at an average cost of $1.50 per share, with a total value of $2,649,819.00. Following the transaction, the director directly owned 8,753,290 shares of the company's stock, valued at $13,129,935. This trade represents a 25.28% increase in their ownership of the stock. The disclosure for this purchase can be found here. Corporate insiders own 5.86% of the company's stock.

Institutional Investors Weigh In On Heron Therapeutics

Institutional investors and hedge funds have recently bought and sold shares of the company. Raymond James Financial Inc. bought a new stake in Heron Therapeutics during the fourth quarter worth about $208,000. AIGH Capital Management LLC bought a new stake in Heron Therapeutics during the first quarter worth about $6,112,000. Jefferies Financial Group Inc. bought a new stake in Heron Therapeutics during the first quarter worth about $710,000. Palisade Capital Management LP lifted its position in Heron Therapeutics by 34.7% during the first quarter. Palisade Capital Management LP now owns 5,286,931 shares of the biotechnology company's stock worth $11,631,000 after purchasing an additional 1,360,542 shares during the period. Finally, Point72 Asset Management L.P. bought a new position in shares of Heron Therapeutics in the fourth quarter worth about $4,706,000. Institutional investors own 80.01% of the company's stock.

Heron Therapeutics Company Profile

Heron Therapeutics, Inc, a commercial-stage biotechnology company, focuses on enhancing the lives of patients by developing and commercializing therapeutic that enhances medical care. The company's product candidates utilize its proprietary Biochronomer, a drug delivery technology, which delivers therapeutic levels of a range of short-acting pharmacological agents over a period from days to weeks with a single administration.

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