HUTCHMED (NASDAQ:HCM) Shares Gap Up - Here's What Happened

Key Points

• HUTCHMED gapped up pre-market, opening at $14.38 vs. the prior close of $13.89 and last trading at $14.46 (up about 2.6%).
• The company reported a major earnings miss, posting $0.01 EPS vs. a $2.50 consensus and revenue of $135.42M vs. an expected $290.50M.
• Analyst views are mixed—Jefferies upgraded to a "strong-buy," but the consensus rating is "Hold" with an average target price of $16.88.

HUTCHMED (China) Limited Sponsored ADR (NASDAQ:HCM - Get Free Report) shares gapped up before the market opened on Wednesday . The stock had previously closed at $13.89, but opened at $14.38. HUTCHMED shares last traded at $14.46, with a volume of 8,122 shares.

Analyst Upgrades and Downgrades

Several equities analysts have recently issued reports on the company. Jefferies Financial Group upgraded HUTCHMED to a "strong-buy" rating in a research note on Monday, January 19th. Wall Street Zen cut HUTCHMED from a "buy" rating to a "hold" rating in a research note on Saturday. Bank of America reduced their target price on HUTCHMED from $21.00 to $20.00 and set a "buy" rating on the stock in a report on Tuesday. Finally, Weiss Ratings restated a "hold (c)" rating on shares of HUTCHMED in a report on Thursday, January 22nd. One research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, HUTCHMED currently has a consensus rating of "Hold" and an average target price of $16.88.

HUTCHMED Trading Up 2.6%

The company has a current ratio of 4.96, a quick ratio of 4.83 and a debt-to-equity ratio of 0.05. The business has a fifty day simple moving average of $14.73 and a two-hundred day simple moving average of $14.93.

HUTCHMED (NASDAQ:HCM - Get Free Report) last released its quarterly earnings data on Thursday, March 5th. The company reported $0.01 EPS for the quarter, missing the consensus estimate of $2.50 by ($2.49). The company had revenue of $135.42 million during the quarter, compared to the consensus estimate of $290.50 million. On average, analysts expect that HUTCHMED will post 0.16 EPS for the current year.

Hedge Funds Weigh In On HUTCHMED

Institutional investors have recently made changes to their positions in the company. ABN Amro Investment Solutions acquired a new position in HUTCHMED in the 2nd quarter worth about $962,000. Tema Etfs LLC acquired a new position in HUTCHMED in the 2nd quarter valued at $641,000. State Street Corp grew its stake in shares of HUTCHMED by 1.2% during the fourth quarter. State Street Corp now owns 321,305 shares of the company's stock worth $4,283,000 after purchasing an additional 3,801 shares in the last quarter. Amundi raised its stake in HUTCHMED by 41.9% during the 3rd quarter. Amundi now owns 223,330 shares of the company's stock valued at $3,620,000 after acquiring an additional 65,898 shares during the last quarter. Finally, M&G PLC raised its holdings in HUTCHMED by 26.7% during the fourth quarter. M&G PLC now owns 259,033 shares of the company's stock worth $3,367,000 after purchasing an additional 54,601 shares during the last quarter. 8.82% of the stock is owned by hedge funds and other institutional investors.

HUTCHMED Company Profile

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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