Harmony Biosciences (NASDAQ:HRMY) Shares Gap Down on Disappointing Earnings

Key Points

• Harmony Biosciences shares fell after disappointing quarterly results, opening at $34.50 versus the prior close of $37.02 and later trading at $33.59.
• The company reported EPS of $0.81, below the $1.09 analyst consensus; revenue of $268.92 million also missed estimates, though it grew 12.3% year over year.
• Analysts’ consensus rating remains Moderate Buy, with an average price target of $48.00.

Harmony Biosciences Holdings, Inc. (NASDAQ:HRMY - Get Free Report)'s stock price gapped down before the market opened on Wednesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $37.02, but opened at $34.50. Harmony Biosciences shares last traded at $33.59, with a volume of 423,798 shares changing hands.

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

Wall Street Analyst Weigh In

Several research firms have recently issued reports on HRMY. Mizuho set a $49.00 price target on Harmony Biosciences in a research note on Thursday, October 29th. Needham & Company LLC restated a "buy" rating and set a $50.00 price objective on shares of Harmony Biosciences in a research note on Monday, October 19th. Oppenheimer reaffirmed an "outperform" rating on shares of Harmony Biosciences in a report on Thursday, September 24th. UBS Group reiterated a "neutral" rating and issued a $37.00 target price on shares of Harmony Biosciences in a research report on Wednesday, August 5th. Finally, WBB Securities raised shares of Harmony Biosciences to a "hold" rating in a research note on Friday, October 23rd. One investment analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $48.00.

Insider Activity

In other news, insider Kumar Budur sold 35,852 shares of the business's stock in a transaction on 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 sale, the insider owned 13,115 shares of the company's stock, valued at approximately $564,600.75. The trade was a 73.22% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. In the last 90 days, insiders sold 72,406 shares of company stock worth $3,108,520. 11.00% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the company. Farther Finance Advisors LLC increased its holdings in shares of Harmony Biosciences by 166.7% in the 3rd quarter. Farther Finance Advisors LLC now owns 816 shares of the company's stock valued at $32,000 after purchasing an additional 510 shares during the period. Nykredit A S purchased a new stake in shares of Harmony Biosciences in the second quarter worth approximately $33,000. Signature Equity Partners LLC acquired a new stake in shares of Harmony Biosciences during the third quarter worth approximately $37,000. Signaturefd LLC boosted its holdings in shares of Harmony Biosciences by 200.0% during the third quarter. Signaturefd LLC now owns 1,686 shares of the company's stock worth $66,000 after purchasing an additional 1,124 shares during the period. Finally, Integrated Wealth Concepts LLC purchased a new position in Harmony Biosciences during the second quarter valued at approximately $65,000. Institutional investors own 86.23% of the company's stock.

Harmony Biosciences Price Performance

The stock's 50-day moving average is $39.73 and its 200 day moving average is $34.74. The stock has a market capitalization of $1.93 billion, a PE ratio of 10.71, a P/E/G ratio of 0.31 and a beta of 1.00. The company has a quick ratio of 3.45, a current ratio of 3.48 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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