Harmony Biosciences (NASDAQ:HRMY) Share Price Breaks Below Two Hundred Day Moving Average Following Weak Earnings

Key Points

• Harmony Biosciences missed quarterly expectations: EPS was $0.81 versus the $1.09 consensus, and revenue of $268.92 million fell short of forecasts, despite growing 12.3% year over year.
• The earnings report sent shares below their 200-day moving average of $34.73; the stock traded as low as $32.61 and last changed hands at $34.465.
• Business outlook remained positive: WAKIX generated about $269 million in third-quarter revenue, and the company reiterated its $1.0–$1.04 billion full-year revenue guidance. Analysts’ consensus rating was “Moderate Buy,” with an average price target of $48.

Harmony Biosciences Holdings, Inc. (NASDAQ:HRMY - Get Free Report)'s stock price crossed below its 200-day moving average during trading on Wednesday after the company announced weaker than expected quarterly earnings. The stock has a 200-day moving average of $34.73 and traded as low as $32.61. Harmony Biosciences shares last traded at $34.4650, with a volume of 2,469,132 shares changing hands.

The company reported $0.81 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.09 by ($0.28). The business had revenue of $268.92 million for the quarter, compared to analysts' expectations of $272.05 million. Harmony Biosciences had a return on equity of 20.06% and a net margin of 18.88%. The business's quarterly revenue was up 12.3% on a year-over-year basis. During the same period last year, the company posted $1.08 earnings per share.

More Harmony Biosciences News

Here are the key news stories impacting Harmony Biosciences this week:

• Positive Sentiment: WAKIX generated $269 million in third-quarter net revenue, supported by 400 net patient additions. Harmony reiterated its full-year WAKIX revenue guidance of $1.0 billion to $1.04 billion and said it remains on track to exceed $1 billion. The company also reported strong multiple-ascending-dose data for orexin agonist BP-205, supporting its potential best-in-class profile. Company earnings release
• Negative Sentiment: Quarterly adjusted earnings of $0.81 per share missed the $1.09 analyst consensus, while revenue of $268.92 million came in below estimates of $272.05 million. Revenue was up 12.3% year over year, but the earnings miss was the clearest near-term headwind for the stock. Quarterly results

Analysts Set New Price Targets

HRMY has been the subject of a number of recent research reports. HC Wainwright reiterated a "buy" rating and set a $55.00 price target on shares of Harmony Biosciences in a report on Tuesday, October 13th. Oppenheimer reissued an "outperform" rating on shares of Harmony Biosciences in a research note on Thursday, September 24th. Weiss Ratings raised shares of Harmony Biosciences from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Monday, October 12th. UBS Group restated a "neutral" rating and set a $37.00 target price on shares of Harmony Biosciences in a research report on Wednesday, August 5th. Finally, Wolfe Research began coverage on shares of Harmony Biosciences in a research note on Wednesday, August 26th. They issued an "outperform" rating and a $60.00 target price for the company. One research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, Harmony Biosciences has a consensus rating of "Moderate Buy" and an average price target of $48.00.

Insider Buying and Selling at Harmony Biosciences

In other news, insider Kumar Budur sold 35,852 shares of the firm's stock in a transaction dated Friday, September 18th. The stock was sold at an average price of $43.05, for a total value of $1,543,428.60. Following the transaction, the insider directly owned 13,115 shares in the company, valued at $564,600.75. This trade represents a 73.22% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. In the last quarter, insiders have sold 72,406 shares of company stock valued at $3,108,520. 11.00% of the stock is owned by company insiders.

Institutional Investors Weigh In On Harmony Biosciences

Institutional investors and hedge funds have recently modified their holdings of the stock. BlackRock Inc. bought a new position in shares of Harmony Biosciences in the second quarter valued at $258,583,000. Dimensional Fund Advisors LP boosted its stake in shares of Harmony Biosciences by 13.4% during the 1st quarter. Dimensional Fund Advisors LP now owns 2,076,510 shares of the company's stock worth $58,157,000 after acquiring an additional 245,784 shares in the last quarter. Allspring Global Investments Holdings LLC grew its holdings in shares of Harmony Biosciences by 548.5% in the 3rd quarter. Allspring Global Investments Holdings LLC now owns 1,124,717 shares of the company's stock worth $44,505,000 after acquiring an additional 951,273 shares during the last quarter. Renaissance Technologies LLC grew its holdings in shares of Harmony Biosciences by 0.6% in the 1st quarter. Renaissance Technologies LLC now owns 1,077,371 shares of the company's stock worth $30,177,000 after acquiring an additional 6,900 shares during the last quarter. Finally, venBio Partners LLC acquired a new position in shares of Harmony Biosciences in the 2nd quarter worth $17,192,584. Hedge funds and other institutional investors own 86.23% of the company's stock.

Harmony Biosciences Stock Down 6.9%

The stock has a fifty day moving average of $39.64 and a 200-day moving average of $34.73. The firm has a market capitalization of $2.01 billion, a price-to-earnings ratio of 11.19, a PEG ratio of 0.30 and a beta of 1.00. The company has a current ratio of 3.48, a quick ratio of 3.45 and a debt-to-equity ratio of 0.13.

About Harmony Biosciences

Harmony Biosciences Holdings, Inc is a commercial-stage biopharmaceutical company focused on developing and providing therapies for patients with rare neurological disorders. The company's activities center on conditions involving sleep-wake regulation and other central nervous system disorders where treatment options may be limited.

Harmony's principal product is WAKIX (pitolisant), an oral, non-scheduled treatment that acts as a histamine-3 receptor antagonist/inverse agonist. In the United States, WAKIX is approved for the treatment of excessive daytime sleepiness or cataplexy in adults with narcolepsy and for excessive daytime sleepiness in pediatric patients aged 6 and older with narcolepsy.

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