Harrow (NASDAQ:HROW) Shares Gap Up Following Better-Than-Expected Earnings

Key Points

• Harrow beat quarterly earnings expectations: EPS was $0.25 versus the $0.19 consensus, while revenue of $99.3 million slightly topped estimates. Shares opened at $33.06, up from the prior close of $27.47, and later traded around $31.84.
• Analyst sentiment is broadly positive but mixed: MarketBeat’s consensus rating is “Moderate Buy,” with an average price target of $66.17; recent ratings range from “strong sell” to “outperform.”
• The company reported a 13.51% net margin loss for the quarter. Institutional investors own 72.76% of Harrow’s shares, while company insiders own 12.8%.

Shares of Harrow, Inc. (NASDAQ:HROW - Get Free Report) gapped up prior to trading on Tuesday following a stronger than expected earnings report. The stock had previously closed at $27.47, but opened at $33.06. Harrow shares last traded at $31.8410, with a volume of 590,559 shares changing hands.

The company reported $0.25 EPS for the quarter, topping analysts' consensus estimates of $0.19 by $0.06. The firm had revenue of $99.30 million for the quarter, compared to the consensus estimate of $98.59 million. Harrow had a negative return on equity of 38.00% and a negative net margin of 13.51%.

Analysts Set New Price Targets

HROW has been the subject of a number of research reports. Weiss Ratings restated a "sell (e+)" rating on shares of Harrow in a report on Friday, October 16th. Leerink Partners started coverage on shares of Harrow in a report on Wednesday, September 9th. They set an "outperform" rating and a $45.00 target price on the stock. Wall Street Zen raised shares of Harrow from a "sell" rating to a "hold" rating in a research report on Saturday, August 15th. Zacks Research downgraded shares of Harrow from a "hold" rating to a "strong sell" rating in a research note on Tuesday, November 3rd. Finally, BTIG Research restated a "buy" rating and issued a $63.00 price target on shares of Harrow in a research note on Wednesday, October 7th. Seven investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $66.17.

Insider Activity

In related news, insider Amir Shojaei sold 11,250 shares of the company's stock in a transaction on Friday, August 14th. The shares were sold at an average price of $40.00, for a total value of $450,000.00. Following the completion of the sale, the insider owned 11,250 shares in the company, valued at $450,000. This represents a 50.00% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Insiders own 12.80% of the company's stock.

Institutional Trading of Harrow

Several hedge funds and other institutional investors have recently made changes to their positions in HROW. Drive Wealth Management LLC acquired a new stake in shares of Harrow in the third quarter valued at about $2,057,000. Westside Investment Management Inc. increased its holdings in Harrow by 4.7% in the third quarter. Westside Investment Management Inc. now owns 234,526 shares of the company's stock valued at $7,223,000 after buying an additional 10,475 shares in the last quarter. Woodmont Investment Counsel LLC increased its holdings in Harrow by 4.6% in the third quarter. Woodmont Investment Counsel LLC now owns 116,899 shares of the company's stock valued at $3,600,000 after buying an additional 5,089 shares in the last quarter. Mirae Asset Global Investments Co. Ltd. purchased a new position in Harrow in the third quarter valued at about $59,000. Finally, Profund Advisors LLC lifted its position in shares of Harrow by 437.8% during the 3rd quarter. Profund Advisors LLC now owns 41,532 shares of the company's stock valued at $1,279,000 after acquiring an additional 33,810 shares during the period. Hedge funds and other institutional investors own 72.76% of the company's stock.

Harrow Stock Performance

The stock's 50-day moving average price is $31.43 and its 200-day moving average price is $37.82. The company has a debt-to-equity ratio of 19.70, a quick ratio of 2.08 and a current ratio of 2.24. The company has a market capitalization of $1.19 billion, a price-to-earnings ratio of -31.66 and a beta of 0.18.

Harrow Company Profile

Harrow is a pharmaceutical company focused on developing, acquiring and commercializing treatments for eye conditions. Its portfolio includes prescription ophthalmic medicines used in areas such as dry eye disease, eye inflammation and pain management, as well as products used in eye surgery and clinical settings.

The company markets branded products including VEVYE, a treatment for dry eye disease, and IHEEZO, an ophthalmic anesthetic gel. Through its ImprimisRx subsidiary, Harrow also provides compounded medications and related services for ophthalmology practices and patients.

Harrow, formerly known as Harrow Health, is headquartered in Nashville, Tennessee, and primarily serves the U.S.

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