Harmony Biosciences (NASDAQ:HRMY) Shares Gap Down - What's Next?

Key Points

• Harmony Biosciences shares fell 3.3%, opening at $38.34 after previously closing at $40.28, while trading below its 50-day moving average of $40.07.
• Analyst sentiment remains mixed: five analysts rate the stock a Buy, five a Hold, and one a Sell. The consensus rating is Hold, with an average price target of $47.44.
• The company reported strong recent operating results, with quarterly EPS of $1.28 beating estimates by $0.32 and revenue rising 30.3% year over year to $261.28 million. Institutional investors own 86.23% of the stock, while insiders have recently sold shares.

Harmony Biosciences Holdings, Inc. (NASDAQ:HRMY - Get Free Report) gapped down prior to trading on Monday. The stock had previously closed at $40.28, but opened at $38.34. Harmony Biosciences shares last traded at $38.6750, with a volume of 264,960 shares traded.

Analysts Set New Price Targets

Several analysts recently commented on the stock. Oppenheimer restated an "outperform" rating on shares of Harmony Biosciences in a report on Thursday, September 24th. Needham & Company LLC reiterated a "buy" rating and issued a $50.00 price objective on shares of Harmony Biosciences in a research note on Monday. Wall Street Zen upgraded shares of Harmony Biosciences from a "buy" rating to a "strong-buy" rating in a research report on Sunday, August 16th. Weiss Ratings upgraded shares of Harmony Biosciences from a "hold (c)" rating to a "hold (c+)" rating in a research report on Monday, August 17th. Finally, Deutsche Bank Aktiengesellschaft reissued a "hold" rating and set a $42.00 target price on shares of Harmony Biosciences in a research note on Thursday, October 1st. Five equities research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average price target of $47.44.

Harmony Biosciences Trading Down 3.3%

The business has a 50-day moving average of $40.07 and a 200-day moving average of $35.04. The company has a quick ratio of 3.45, a current ratio of 3.48 and a debt-to-equity ratio of 0.13. The stock has a market cap of $2.27 billion, a price-to-earnings ratio of 12.66, a PEG ratio of 0.32 and a beta of 1.01.

Harmony Biosciences (NASDAQ:HRMY - Get Free Report) last issued its earnings results on Tuesday, August 4th. The company reported $1.28 earnings per share for the quarter, topping the consensus estimate of $0.96 by $0.32. Harmony Biosciences had a return on equity of 20.06% and a net margin of 18.88%. The company had revenue of $261.28 million for the quarter, compared to analyst estimates of $250.77 million. During the same period in the prior year, the firm posted $0.92 EPS. The business's revenue was up 30.3% compared to the same quarter last year. As a group, research analysts forecast that Harmony Biosciences Holdings, Inc. will post 3.79 earnings per share for the current year.

Insider Activity

In related news, insider Kumar Budur sold 35,852 shares of the business's stock in a transaction that occurred 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 completion of 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 sale was disclosed in a filing with the SEC, which can be accessed through this link. In the last three months, insiders sold 72,406 shares of company stock worth $3,108,520. 11.00% of the stock is owned by insiders.

Hedge Funds Weigh In On Harmony Biosciences

Hedge funds have recently added to or reduced their stakes in the company. BlackRock Inc. acquired a new stake in Harmony Biosciences in the second quarter valued at approximately $258,583,000. Dimensional Fund Advisors LP grew its position in Harmony Biosciences by 13.4% in the first 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. SG Americas Securities LLC grew its position in Harmony Biosciences by 109.9% in the first quarter. SG Americas Securities LLC now owns 2,018,174 shares of the company's stock worth $56,529,000 after acquiring an additional 1,056,507 shares in the last quarter. Renaissance Technologies LLC grew its position in Harmony Biosciences by 0.6% in the first 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 in the last quarter. Finally, Armistice Capital LLC bought a new stake in Harmony Biosciences in the fourth quarter worth approximately $18,710,000. Institutional investors and hedge funds own 86.23% of the company's stock.

About Harmony Biosciences

Harmony Biosciences Holdings, Inc is a commercial-stage pharmaceutical company focused on developing and marketing therapies for patients with rare neurological disorders. The company's activities center on conditions that are often underserved by conventional treatment options, including sleep disorders and other central nervous system diseases.

Harmony's principal product is WAKIX (pitolisant), an oral, non-scheduled medication that acts as a histamine-3 receptor antagonist/inverse agonist.

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