HUTCHMED (NASDAQ:HCM) Shares Gap Up - Time to Buy?

Key Points

• HUTCHMED shares opened higher, rising from a prior close of $14.18 to $14.69 and last trading near $14.81.
• Analyst sentiment is mixed but leans positive: MarketBeat reports a consensus “Moderate Buy” rating and an average price target of $14.87, with recent upgrades from Daiwa Securities and Wall Street Zen offset by a Weiss Ratings downgrade and reduced targets from Goldman Sachs and Bank of America.
• The company’s latest quarterly results missed expectations, reporting EPS of $0.05 versus the $0.14 estimate and revenue of $139.14 million versus $304.16 million expected. Despite the miss, HUTCHMED maintains strong liquidity, with a 5.50 quick ratio and 5.64 current ratio.

HUTCHMED (China) Limited Sponsored ADR (NASDAQ:HCM - Get Free Report) gapped up before the market opened on Tuesday. The stock had previously closed at $14.18, but opened at $14.69. HUTCHMED shares last traded at $14.8050, with a volume of 14,904 shares traded.

Wall Street Analyst Weigh In

Several research analysts have weighed in on HCM shares. Daiwa Securities Group upgraded shares of HUTCHMED from a "hold" rating to a "buy" rating in a research report on Thursday, September 3rd. Weiss Ratings downgraded HUTCHMED from a "hold (c-)" rating to a "sell (d)" rating in a research note on Friday, July 31st. Wall Street Zen upgraded shares of HUTCHMED from a "hold" rating to a "buy" rating in a research report on Saturday, August 8th. The Goldman Sachs Group lowered their price objective on shares of HUTCHMED from $16.00 to $14.00 and set a "neutral" rating on the stock in a research note on Thursday, July 23rd. Finally, Bank of America lowered their price objective on shares of HUTCHMED from $20.00 to $17.00 and set a "buy" rating on the stock in a research note on Tuesday, July 7th. One research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, one has given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, HUTCHMED presently has a consensus rating of "Moderate Buy" and an average target price of $14.87.

HUTCHMED Price Performance

The company has a debt-to-equity ratio of 0.06, a quick ratio of 5.50 and a current ratio of 5.64. The stock's 50 day moving average price is $13.40 and its two-hundred day moving average price is $12.63.

HUTCHMED (NASDAQ:HCM - Get Free Report) last posted its earnings results on Thursday, July 30th. The company reported $0.05 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.14 by ($0.09). The company had revenue of $139.14 million during the quarter, compared to analysts' expectations of $304.16 million. As a group, sell-side analysts expect that HUTCHMED will post 0.23 earnings per share for the current fiscal year.

Institutional Trading of HUTCHMED

Several institutional investors and hedge funds have recently made changes to their positions in HCM. XY Capital Ltd increased its position in HUTCHMED by 115.2% during the 2nd quarter. XY Capital Ltd now owns 104,130 shares of the company's stock worth $1,120,000 after purchasing an additional 55,736 shares in the last quarter. Amundi raised its stake in HUTCHMED by 4.0% in the 1st quarter. Amundi now owns 232,246 shares of the company's stock valued at $3,474,000 after purchasing an additional 8,916 shares during the last quarter. Finally, Janney Montgomery Scott LLC acquired a new position in HUTCHMED in the 1st quarter valued at about $365,000. 8.82% of the stock is currently owned by hedge funds and other institutional investors.

About HUTCHMED

HUTCHMED NASDAQ: HCM is a biopharmaceutical company focused on discovering, developing and commercializing medicines for cancer and immunological diseases. Founded in 2000, the company has built an integrated research and development platform spanning drug discovery, clinical development, regulatory activities and commercialization.

HUTCHMED's portfolio includes targeted therapies and other treatments for solid tumors and hematologic malignancies. Its medicines include fruquintinib, marketed in China as Elunate and in the United States as Fruzaqla, and savolitinib, marketed in China as Orpathys through a collaboration with AstraZeneca.

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