Mirum Pharmaceuticals (NASDAQ:MIRM) Shares Down 5.7% - Should You Sell?

Key Points

• Mirum Pharmaceuticals shares fell 5.7% to about $93.21 on unusually light trading volume, remaining below both its 50-day and 200-day moving averages.
• Analysts remain broadly bullish, with a consensus “Moderate Buy” rating and an average price target of $137.31, despite HC Wainwright cutting its target to $140.
• Recent results showed revenue rising 37.9% year over year to $176.24 million, exceeding estimates, but the company missed on EPS and continues to report substantial losses. Insiders sold more than $13.1 million of stock over the past 90 days.

Mirum Pharmaceuticals, Inc. (NASDAQ:MIRM - Get Free Report) shares fell 5.7% during trading on Friday . The stock traded as low as $93.15 and last traded at $93.21. 148,498 shares were traded during trading, a decline of 82% from the average session volume of 843,418 shares. The stock had previously closed at $98.82.

Wall Street Analyst Weigh In

A number of research analysts recently commented on the company. HC Wainwright decreased their price target on Mirum Pharmaceuticals from $185.00 to $140.00 and set a "buy" rating on the stock in a research report on Thursday, August 6th. Citigroup reissued a "market outperform" rating on shares of Mirum Pharmaceuticals in a report on Thursday, August 27th. JPMorgan Chase & Co. boosted their target price on shares of Mirum Pharmaceuticals from $115.00 to $125.00 and gave the company an "overweight" rating in a research report on Thursday, July 2nd. CLSA set a $146.00 price target on shares of Mirum Pharmaceuticals in a research report on Monday, June 15th. Finally, Weiss Ratings raised shares of Mirum Pharmaceuticals from a "sell (d-)" rating to a "sell (d)" rating in a research note on Thursday, August 6th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, Mirum Pharmaceuticals currently has a consensus rating of "Moderate Buy" and an average target price of $137.31.

Mirum Pharmaceuticals Stock Down 5.4%

The stock has a market cap of $6.07 billion, a price-to-earnings ratio of -6.41 and a beta of 0.49. The company has a current ratio of 2.86, a quick ratio of 2.74 and a debt-to-equity ratio of 1.28. The stock's 50-day moving average price is $104.42 and its 200-day moving average price is $101.43.

Mirum Pharmaceuticals (NASDAQ:MIRM - Get Free Report) last released its earnings results on Wednesday, August 5th. The company reported ($1.06) EPS for the quarter, missing the consensus estimate of ($0.74) by ($0.32). The business had revenue of $176.24 million for the quarter, compared to analyst estimates of $166.33 million. Mirum Pharmaceuticals had a negative return on equity of 36.28% and a negative net margin of 139.18%.The company's revenue for the quarter was up 37.9% on a year-over-year basis. During the same period in the prior year, the business earned ($0.12) EPS. On average, sell-side analysts expect that Mirum Pharmaceuticals, Inc. will post -1.31 earnings per share for the current year.

Insider Buying and Selling

In other Mirum Pharmaceuticals news, SVP Jolanda Howe sold 40,000 shares of the business's stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $100.00, for a total value of $4,000,000.00. Following the completion of the transaction, the senior vice president owned 1,274 shares of the company's stock, valued at $127,400. The trade was a 96.91% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Eric Bjerkholt sold 6,001 shares of the firm's stock in a transaction dated Tuesday, August 11th. The shares were sold at an average price of $99.90, for a total value of $599,499.90. Following the sale, the chief financial officer owned 36,355 shares in the company, valued at $3,631,864.50. The trade was a 14.17% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 126,220 shares of company stock worth $13,181,004 over the last ninety days. 8.32% of the stock is owned by corporate insiders.

Institutional Trading of Mirum Pharmaceuticals

Hedge funds have recently added to or reduced their stakes in the business. Engineers Gate Manager LP increased its stake in Mirum Pharmaceuticals by 218.2% in the 2nd quarter. Engineers Gate Manager LP now owns 8,143 shares of the company's stock worth $953,000 after purchasing an additional 5,584 shares during the period. Insight Wealth Partners LLC purchased a new stake in Mirum Pharmaceuticals during the 2nd quarter valued at $395,000. Integrated Wealth Concepts LLC bought a new stake in Mirum Pharmaceuticals in the 2nd quarter worth $27,000. Arizona State Retirement System increased its position in shares of Mirum Pharmaceuticals by 12.6% in the second quarter. Arizona State Retirement System now owns 11,655 shares of the company's stock valued at $1,364,000 after acquiring an additional 1,306 shares during the period. Finally, Nykredit A S bought a new position in shares of Mirum Pharmaceuticals during the second quarter valued at about $247,000.

About Mirum Pharmaceuticals

Mirum Pharmaceuticals, Inc is a biopharmaceutical company focused on developing and commercializing treatments for rare diseases, with an emphasis on liver and gastrointestinal disorders. The company's medicines are intended to address serious conditions for which available treatment options are limited.

Mirum's lead product is LIVMARLI (maralixibat), an oral bile acid transport inhibitor approved in the United States for the treatment of cholestatic pruritus associated with Alagille syndrome and progressive familial intrahepatic cholestasis in eligible patients.

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