Heron Therapeutics (NASDAQ:HRTX) Shares Cross Above 50 Day Moving Average on Disappointing Earnings

Key Points

• Heron Therapeutics’ shares rose 26.5% and crossed above their 50-day moving average, trading as high as $0.42 before last trading at $0.3706.
• The company reported a quarterly loss of $0.03 per share, missing the $0.02 loss analysts expected; revenue of $35.25 million also fell short of the $37.50 million estimate.
• Analyst sentiment remains cautious: Heron has an average “Reduce” rating and a consensus price target of $2.00.

Shares of Heron Therapeutics, Inc. (NASDAQ:HRTX - Get Free Report) passed above its 50-day moving average during trading on Monday following a better than expected earnings announcement. The stock has a 50-day moving average of $0.33 and traded as high as $0.42. Heron Therapeutics shares last traded at $0.3706, with a volume of 138,270,889 shares trading hands.

The biotechnology company reported ($0.03) EPS for the quarter, missing the consensus estimate of ($0.02) by ($0.01). The firm had revenue of $35.25 million during the quarter, compared to analyst estimates of $37.50 million. Heron Therapeutics had a negative return on equity of 293.02% and a negative net margin of 22.52%.

Wall Street Analyst Weigh In

Several analysts have recently commented on HRTX shares. Zacks Research raised Heron Therapeutics from a "strong sell" rating to a "hold" rating in a report on Monday, August 3rd. HC Wainwright lowered Heron Therapeutics from a "buy" rating to a "neutral" rating in a report on Tuesday, August 11th. Wall Street Zen upgraded Heron Therapeutics to a "sell" rating in a research report on Saturday, August 8th. Finally, Weiss Ratings reiterated a "sell (e+)" rating on shares of Heron Therapeutics in a research report on Thursday, October 15th. Three analysts have rated the stock with a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, Heron Therapeutics currently has an average rating of "Reduce" and a consensus price target of $2.00.

Institutional Investors Weigh In On Heron Therapeutics

A number of hedge funds and other institutional investors have recently modified their holdings of HRTX. HORAN Wealth LLC acquired a new position in Heron Therapeutics during the first quarter worth $33,000. Deutsche Bank AG acquired a new stake in Heron Therapeutics in the second quarter valued at $41,000. Ieq Capital LLC purchased a new position in shares of Heron Therapeutics in the second quarter valued at $41,000. Bank of America Corp DE purchased a new position in shares of Heron Therapeutics in the second quarter valued at $46,000. Finally, Persistent Asset Partners Ltd purchased a new position in shares of Heron Therapeutics in the second quarter valued at $50,000. 80.01% of the stock is currently owned by institutional investors and hedge funds.

Heron Therapeutics Stock Up 26.5%

The firm has a market cap of $70.36 million, a price-to-earnings ratio of -1.95 and a beta of 1.65. The company has a current ratio of 2.49, a quick ratio of 1.51 and a debt-to-equity ratio of 24.35. The firm has a 50 day moving average price of $0.33 and a 200-day moving average price of $0.67.

About Heron Therapeutics

Heron Therapeutics, Inc is a commercial-stage biotechnology company focused on developing and marketing medicines for acute care and oncology supportive care. Its products are designed to address unmet needs such as postoperative pain and chemotherapy-induced nausea and vomiting.

The company's portfolio includes ZYNRELEF, an extended-release solution combining bupivacaine and meloxicam for the management of postoperative pain in adults. Heron also markets CINVANTI, an injectable formulation of aprepitant used as part of a combination regimen to help prevent acute and delayed nausea and vomiting associated with highly or moderately emetogenic cancer chemotherapy.

Heron's commercial activities are primarily focused on the United States, where it works with healthcare providers and institutions to support the use of its products in surgical and oncology settings.

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