Olema Pharmaceuticals (NASDAQ:OLMA) Shares Gap Down on Disappointing Earnings

Key Points

• Olema Pharmaceuticals shares fell sharply after the company reported quarterly EPS of $(0.61), missing the consensus estimate of $(0.55); shares opened at $10.98 versus a $11.94 prior close.
• Analyst sentiment remains broadly positive, with 11 Buy, two Hold, and one Sell rating, producing a consensus “Moderate Buy” rating and a $43.90 target price despite recent target reductions.
• Institutional investors own 91.78% of the stock, while insider ownership stands at 12.56%; director Cyrus Harmon recently sold 12,500 shares worth approximately $144,750.

Olema Pharmaceuticals, Inc. (NASDAQ:OLMA - Get Free Report) gapped down prior to trading on Tuesday following a weaker than expected earnings announcement. The stock had previously closed at $11.94, but opened at $10.98. Olema Pharmaceuticals shares last traded at $10.7450, with a volume of 623,791 shares trading hands.

The company reported ($0.61) EPS for the quarter, missing the consensus estimate of ($0.55) by ($0.06).

Analyst Ratings Changes

A number of analysts have recently weighed in on the stock. Guggenheim reduced their price target on shares of Olema Pharmaceuticals from $38.00 to $35.00 and set a "buy" rating for the company in a research note on Wednesday, May 13th. Wall Street Zen lowered shares of Olema Pharmaceuticals from a "sell" rating to a "strong sell" rating in a research note on Saturday, July 25th. Weiss Ratings cut Olema Pharmaceuticals from a "sell (d-)" rating to a "sell (e+)" rating in a report on Monday, August 3rd. Finally, HC Wainwright cut their price objective on Olema Pharmaceuticals from $38.00 to $36.00 and set a "buy" rating for the company in a report on Tuesday. Eleven equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, Olema Pharmaceuticals currently has a consensus rating of "Moderate Buy" and a consensus target price of $43.90.

Insider Activity at Olema Pharmaceuticals

In other news, Director Cyrus Harmon sold 12,500 shares of the firm's stock in a transaction on Thursday, July 23rd. The stock was sold at an average price of $11.58, for a total value of $144,750.00. Following the completion of the sale, the director owned 715,270 shares of the company's stock, valued at $8,282,826.60. This trade represents a 1.72% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Company insiders own 12.56% of the company's stock.

Institutional Investors Weigh In On Olema Pharmaceuticals

A number of hedge funds and other institutional investors have recently made changes to their positions in OLMA. Siren L.L.C. grew its holdings in Olema Pharmaceuticals by 44.1% during the first quarter. Siren L.L.C. now owns 4,756,949 shares of the company's stock valued at $70,926,000 after purchasing an additional 1,456,249 shares during the last quarter. Jennison Associates LLC bought a new position in Olema Pharmaceuticals in the 4th quarter worth $24,100,000. SEB Asset Management AB acquired a new position in Olema Pharmaceuticals during the 1st quarter worth $5,061,000. Dimensional Fund Advisors LP lifted its position in Olema Pharmaceuticals by 12.9% during the 1st quarter. Dimensional Fund Advisors LP now owns 1,082,434 shares of the company's stock worth $16,134,000 after acquiring an additional 123,790 shares during the last quarter. Finally, Defilade Capital Management L.P. boosted its holdings in Olema Pharmaceuticals by 21.9% during the first quarter. Defilade Capital Management L.P. now owns 1,504,536 shares of the company's stock valued at $22,433,000 after acquiring an additional 269,902 shares during the period. 91.78% of the stock is owned by hedge funds and other institutional investors.

Olema Pharmaceuticals Price Performance

The company has a debt-to-equity ratio of 0.01, a current ratio of 10.88 and a quick ratio of 10.88. The stock's fifty day simple moving average is $11.25 and its 200-day simple moving average is $15.77. The company has a market capitalization of $912.72 million, a P/E ratio of -5.17 and a beta of 2.03.

About Olema Pharmaceuticals

Olema Pharmaceuticals, Inc, a clinical-stage biopharmaceutical company, focuses on the discovery, development, and commercialization of therapies for women's cancers. Its lead product candidate is OP-1250, an estrogen receptor (ER) antagonist and a selective ER degrader, which is in Phase 3 clinical trial for the treatment of recurrent, locally advanced, or metastatic estrogen receptor-positive, human epidermal growth factor receptor 2-negative breast cancer; and OP-1250 combine with CDK4/6 inhibitors palbociclib, ribociclib, and alpelisib in Phase 1/2 clinical trial for the treatment of recurrent, locally advanced, or metastatic estrogen receptor-positive human epidermal growth factor receptor 2-negative breast cancer, as well as develops OPERA-01 for the of ER+/HER2- advanced or metastatic breast cancer.

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