HUTCHMED (NASDAQ:HCM) Shares Gap Down - Here's Why

Key Points

• Shares gapped down premarket from $14.56 to $13.78 and were last around $14.07, trading on light volume (~1,400 shares) while hovering near its 50- and 200-day moving averages (~$14.63–$14.64).
• Big earnings miss: HUTCHMED reported $0.01 EPS (vs. $2.50 expected) and $135.4M revenue (vs. $290.5M expected), with analysts projecting just 0.41 EPS for the fiscal year.
• Analyst ratings are mixed — one Strong Buy, one Buy, three Holds and one Sell — giving a consensus rating of "Hold" and an average price target of $16.88; Bank of America trimmed its target to $20 but kept a Buy, while Jefferies upgraded to Strong Buy.

Shares of HUTCHMED (China) Limited Sponsored ADR (NASDAQ:HCM - Get Free Report) gapped down before the market opened on Friday . The stock had previously closed at $14.56, but opened at $13.78. HUTCHMED shares last traded at $14.0690, with a volume of 1,408 shares trading hands.

Analyst Ratings Changes

A number of research analysts recently commented on the stock. Jefferies Financial Group raised shares of HUTCHMED to a "strong-buy" rating in a research report on Monday, January 19th. Wall Street Zen downgraded shares of HUTCHMED from a "buy" rating to a "hold" rating in a research report on Saturday, March 7th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of HUTCHMED in a research report on Thursday, January 22nd. Finally, Bank of America lowered their price objective on shares of HUTCHMED from $21.00 to $20.00 and set a "buy" rating on the stock in a research report on Tuesday, March 10th. One research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average price target of $16.88.

HUTCHMED Stock Up 1.8%

The company has a debt-to-equity ratio of 0.05, a current ratio of 4.96 and a quick ratio of 4.83. The company's 50-day simple moving average is $14.63 and its 200 day simple moving average is $14.64.

HUTCHMED (NASDAQ:HCM - Get Free Report) last posted its earnings results on Friday, March 6th. The company reported $0.01 EPS for the quarter, missing the consensus estimate of $2.50 by ($2.49). The business had revenue of $135.42 million for the quarter, compared to the consensus estimate of $290.50 million. On average, equities research analysts predict that HUTCHMED will post 0.41 EPS for the current fiscal year.

Institutional Trading of HUTCHMED

Several large investors have recently added to or reduced their stakes in the business. Ameriprise Financial Inc. grew its position in HUTCHMED by 4.7% in the second quarter. Ameriprise Financial Inc. now owns 15,519 shares of the company's stock worth $234,000 after acquiring an additional 698 shares in the last quarter. Bank of America Corp DE grew its position in HUTCHMED by 5.9% in the third quarter. Bank of America Corp DE now owns 21,791 shares of the company's stock worth $343,000 after acquiring an additional 1,209 shares in the last quarter. Crossmark Global Holdings Inc. grew its position in HUTCHMED by 3.3% in the fourth quarter. Crossmark Global Holdings Inc. now owns 52,476 shares of the company's stock worth $700,000 after acquiring an additional 1,680 shares in the last quarter. Vanguard Personalized Indexing Management LLC grew its position in HUTCHMED by 12.1% in the third quarter. Vanguard Personalized Indexing Management LLC now owns 17,363 shares of the company's stock worth $273,000 after acquiring an additional 1,873 shares in the last quarter. Finally, State Street Corp grew its position in HUTCHMED by 1.2% in the fourth quarter. State Street Corp now owns 321,305 shares of the company's stock worth $4,283,000 after acquiring an additional 3,801 shares in the last quarter. 8.82% of the stock is owned by institutional investors.

About HUTCHMED

HUTCHMED NASDAQ: HCM is a fully integrated biopharmaceutical company focused on discovering, developing, manufacturing and commercializing targeted therapies and immunotherapies for the treatment of cancer and other diseases. The company leverages in-house capabilities in small-molecule chemistry, biologics engineering and translational medicine to advance candidates through all stages of development. HUTCHMED's integrated model encompasses early discovery research, clinical development, regulatory filings and commercial launches, enabling seamless progression from laboratory to market.

HUTCHMED's commercial portfolio includes several in-market oncology therapies approved in China, including fruquintinib for metastatic colorectal cancer, surufatinib for neuroendocrine tumors and savolitinib for non-small cell lung cancer.

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