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

Key Points

• HUTCHMED shares opened lower, falling from a prior close of $12.64 to $12.30 before last trading at $12.51.
• Analyst sentiment is mixed, with ratings ranging from Strong Buy to Sell. The stock has a consensus rating of Hold and an average price target of $14.87.
• The company reported weaker-than-expected quarterly results, posting EPS of $0.05 versus estimates of $0.14 and revenue of $139.14 million against expectations of $304.16 million.

HUTCHMED (China) Limited Sponsored ADR (NASDAQ:HCM - Get Free Report)'s share price gapped down prior to trading on Wednesday . The stock had previously closed at $12.64, but opened at $12.30. HUTCHMED shares last traded at $12.51, with a volume of 9,636 shares traded.

Analysts Set New Price Targets

HCM has been the subject of several recent research reports. Morgan Stanley set a $13.60 target price on shares of HUTCHMED in a report on Thursday, May 28th. The Goldman Sachs Group lowered their price target on shares of HUTCHMED from $16.00 to $14.00 and set a "neutral" rating on the stock in a research report on Thursday, July 23rd. Bank of America dropped their price objective on shares of HUTCHMED from $20.00 to $17.00 and set a "buy" rating for the company in a research note on Tuesday, July 7th. Wall Street Zen upgraded HUTCHMED from a "hold" rating to a "buy" rating in a research report on Saturday, August 8th. Finally, Weiss Ratings lowered HUTCHMED from a "hold (c-)" rating to a "sell (d)" rating in a research note on Friday, July 31st. One research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, two have assigned a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average target price of $14.87.

HUTCHMED Price Performance

The business has a 50-day moving average of $11.20 and a 200 day moving average of $12.92. The company has a debt-to-equity ratio of 0.06, a quick ratio of 5.50 and a current ratio of 5.64.

HUTCHMED (NASDAQ:HCM - Get Free Report) last released its earnings results on Thursday, July 30th. The company reported $0.05 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.14 by ($0.09). The business had revenue of $139.14 million for the quarter, compared to the consensus estimate of $304.16 million. As a group, sell-side analysts forecast that HUTCHMED will post 0.23 earnings per share for the current year.

Institutional Trading of HUTCHMED

Several hedge funds and other institutional investors have recently bought and sold shares of HCM. Ameriprise Financial Inc. raised its holdings in HUTCHMED by 4.7% in the 2nd quarter. Ameriprise Financial Inc. now owns 15,519 shares of the company's stock valued at $234,000 after acquiring an additional 698 shares during the last quarter. Bank of America Corp DE boosted its holdings in shares of HUTCHMED by 17.3% during the second quarter. Bank of America Corp DE now owns 20,582 shares of the company's stock worth $310,000 after purchasing an additional 3,035 shares during the last quarter. Dimensional Fund Advisors LP grew its position in shares of HUTCHMED by 34.2% in the third quarter. Dimensional Fund Advisors LP now owns 21,721 shares of the company's stock valued at $342,000 after purchasing an additional 5,538 shares during the period. Janney Montgomery Scott LLC purchased a new stake in shares of HUTCHMED in the first quarter valued at $365,000. Finally, BNP Paribas Financial Markets increased its stake in HUTCHMED by 19.7% in the second quarter. BNP Paribas Financial Markets now owns 25,046 shares of the company's stock valued at $377,000 after purchasing an additional 4,116 shares during the last quarter. 8.82% of the stock is owned by hedge funds and other 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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