Investors Buy High Volume of Put Options on Heron Therapeutics (NASDAQ:HRTX)

Key Points

• Unusual bearish options activity: Traders purchased 41,908 put options on Heron Therapeutics, 7,201% above its typical volume of 574 contracts.
• Weak financial performance: Heron reported a quarterly loss of $0.03 per share and revenue of $37.67 million, below analyst expectations of $42.19 million. Analysts forecast a full-year loss of $0.14 per share.
• Stock remains under pressure: Shares traded near $0.38, well below their 12-month high of $1.57. Analysts hold a consensus “Hold” rating, with a $2.00 average price target, while institutional investors own about 80% of the stock.

Heron Therapeutics, Inc. (NASDAQ:HRTX - Get Free Report) saw some unusual options trading on Wednesday. Stock traders bought 41,908 put options on the company. This represents an increase of 7,201% compared to the typical volume of 574 put options.

Heron Therapeutics Stock Performance

Shares of NASDAQ HRTX traded down $0.02 during mid-day trading on Wednesday, hitting $0.38. The stock had a trading volume of 1,232,294 shares, compared to its average volume of 2,524,296. The firm has a market cap of $71.19 million, a PE ratio of -1.97 and a beta of 1.62. The company has a debt-to-equity ratio of 24.35, a quick ratio of 1.51 and a current ratio of 2.49. The company has a 50 day moving average of $0.34 and a two-hundred day moving average of $0.57. Heron Therapeutics has a twelve month low of $0.26 and a twelve month high of $1.57.

Heron Therapeutics (NASDAQ:HRTX - Get Free Report) last issued its quarterly earnings results on Monday, August 10th. The biotechnology company reported ($0.03) EPS for the quarter. The firm had revenue of $37.67 million for the quarter, compared to analyst estimates of $42.19 million. Heron Therapeutics had a negative return on equity of 293.02% and a negative net margin of 22.52%. Research analysts predict that Heron Therapeutics will post -0.14 EPS for the current fiscal year.

Institutional Investors Weigh In On Heron Therapeutics

A number of large investors have recently bought and sold shares of HRTX. Bank of America Corp DE boosted its stake in Heron Therapeutics by 19.7% during the 1st quarter. Bank of America Corp DE now owns 160,979 shares of the biotechnology company's stock valued at $129,000 after purchasing an additional 26,534 shares during the period. Caitong International Asset Management Co. Ltd grew its holdings in Heron Therapeutics by 335.2% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 35,106 shares of the biotechnology company's stock worth $46,000 after buying an additional 27,040 shares in the last quarter. R Squared Ltd bought a new position in Heron Therapeutics in the 1st quarter worth approximately $27,000. HORAN Wealth LLC bought a new stake in Heron Therapeutics during the 1st quarter valued at $33,000. Finally, Apeiron RIA LLC raised its stake in Heron Therapeutics by 17.6% during the 1st quarter. Apeiron RIA LLC now owns 305,668 shares of the biotechnology company's stock valued at $245,000 after acquiring an additional 45,700 shares in the last quarter. Hedge funds and other institutional investors own 80.01% of the company's stock.

Analyst Ratings Changes

Several equities analysts have recently issued reports on HRTX shares. Weiss Ratings restated a "sell (e+)" rating on shares of Heron Therapeutics in a report on Friday, July 17th. Zacks Research upgraded shares of Heron Therapeutics from a "strong sell" rating to a "hold" rating in a research note on Monday, August 3rd. HC Wainwright cut shares of Heron Therapeutics from a "buy" rating to a "neutral" rating in a research note on Tuesday, August 11th. Finally, Wall Street Zen raised shares of Heron Therapeutics to a "sell" rating in a research report on Saturday, August 8th. One equities research analyst has rated the stock with a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus price target of $2.00.

About Heron Therapeutics

Heron Therapeutics, Inc is a commercial-stage biotechnology company focused on developing and commercializing medicines for acute care and oncology-related supportive care. The company's products are designed to address patient needs in areas such as postsurgical pain and chemotherapy-induced nausea and vomiting.

Heron's portfolio includes ZYNRELEF, an extended-release solution combining bupivacaine and meloxicam for the management of postsurgical pain, and APONVIE, an injectable formulation of aprepitant used to help prevent postoperative nausea and vomiting.

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