Mirum Pharmaceuticals (NASDAQ:MIRM) Stock Crosses Above 50-Day Moving Average Following Weak Earnings

Key Points

• Mirum shares rose above their 50-day moving average, reaching $97.26 and last trading at $96.97.
• Quarterly results were mixed: revenue increased 39.6% year over year to $185.72 million, topping estimates, but the $0.87-per-share loss was wider than analysts expected and compared with a profit a year earlier.
• Several analysts raised price targets, and the stock has a “Moderate Buy” consensus rating with an average target of $153.56; new rare-liver-disease portfolio data is also due to be presented at AASLD’s Liver Meeting.

Mirum Pharmaceuticals, Inc. (NASDAQ:MIRM - Get Free Report) shares passed above its 50 day moving average during trading on Wednesday following a better than expected earnings announcement. The stock has a 50 day moving average of $89.51 and traded as high as $97.26. Mirum Pharmaceuticals shares last traded at $96.97, with a volume of 1,153,638 shares changing hands.

The company reported ($0.87) EPS for the quarter, missing the consensus estimate of ($0.49) by ($0.38). Mirum Pharmaceuticals had a negative net margin of 134.75% and a negative return on equity of 65.71%. The firm had revenue of $185.72 million during the quarter, compared to analysts' expectations of $178.07 million. During the same quarter in the prior year, the company earned $0.05 EPS. The business's revenue for the quarter was up 39.6% on a year-over-year basis.

More Mirum Pharmaceuticals News

Here are the key news stories impacting Mirum Pharmaceuticals this week:

• Positive Sentiment: Several firms raised their price targets: Citizens JMP to $167 from $144, HC Wainwright to $202 from $200, and Cantor Fitzgerald to $160 from $155. RBC reaffirmed its “outperform” rating and $155 target. The favorable analyst outlook is a likely driver of the stock’s strength. Citizens JMP recommendations HC Wainwright recommendations Cantor Fitzgerald recommendations RBC rating report
• Positive Sentiment: Third-quarter revenue rose 39.6% year over year to $185.72 million, exceeding analyst expectations of about $178 million. Mirum Q3 results and business update
• Positive Sentiment: Mirum also announced new data across its rare liver disease portfolio for presentation at AASLD’s The Liver Meeting, a potential source of investor interest in its pipeline. AASLD portfolio data announcement
• Negative Sentiment: The company reported a Q3 loss of $0.87 per share, wider than the roughly $0.49–$0.53 loss analysts expected, and below the $0.05 per-share profit a year earlier. This earnings miss tempers the positive revenue and analyst news. Q3 earnings report

Analysts Set New Price Targets

A number of brokerages recently commented on MIRM. Morgan Stanley increased their price target on Mirum Pharmaceuticals from $137.00 to $152.00 and gave the company an "overweight" rating in a research report on Monday, October 12th. TD Cowen lifted their price target on Mirum Pharmaceuticals from $140.00 to $145.00 and gave the stock a "buy" rating in a report on Wednesday, October 21st. Robert W. Baird boosted their price objective on Mirum Pharmaceuticals from $123.00 to $130.00 and gave the stock an "outperform" rating in a research report on Tuesday, September 29th. HC Wainwright upped their price objective on Mirum Pharmaceuticals from $200.00 to $202.00 and gave the company a "buy" rating in a research note on Wednesday. Finally, UBS Group set a $137.00 price objective on Mirum Pharmaceuticals in a research note on Thursday, August 27th. One analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $153.56.

Insider Transactions at Mirum Pharmaceuticals

In related news, SVP Jolanda Howe sold 658 shares of the company's stock in a transaction that occurred on Wednesday, September 2nd. The stock was sold at an average price of $100.00, for a total value of $65,800.00. Following the transaction, the senior vice president owned 616 shares in the company, valued at approximately $61,600. This represents a 51.65% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Eric Bjerkholt sold 6,001 shares of the stock in a transaction on Tuesday, August 11th. The shares were sold at an average price of $99.90, for a total value of $599,499.90. Following the transaction, the chief financial officer directly owned 36,355 shares of the company's stock, valued at approximately $3,631,864.50. This trade represents a 14.17% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 116,659 shares of company stock worth $11,404,100 in the last quarter. Insiders own 8.32% of the company's stock.

Institutional Trading of Mirum Pharmaceuticals

Several hedge funds have recently made changes to their positions in the company. Commonwealth Equity Services LLC raised its position in shares of Mirum Pharmaceuticals by 10.8% in the third quarter. Commonwealth Equity Services LLC now owns 2,471 shares of the company's stock valued at $211,000 after purchasing an additional 241 shares during the period. Mirae Asset Global Investments Co. Ltd. purchased a new stake in shares of Mirum Pharmaceuticals during the 3rd quarter valued at approximately $284,000. Profund Advisors LLC boosted its holdings in Mirum Pharmaceuticals by 24.1% in the 3rd quarter. Profund Advisors LLC now owns 18,939 shares of the company's stock worth $1,619,000 after buying an additional 3,676 shares during the period. VIRGINIA RETIREMENT SYSTEMS ET Al bought a new position in Mirum Pharmaceuticals in the 3rd quarter worth approximately $248,000. Finally, China Universal Asset Management Co. Ltd. boosted its holdings in Mirum Pharmaceuticals by 22.1% in the 3rd quarter. China Universal Asset Management Co. Ltd. now owns 11,848 shares of the company's stock worth $1,037,000 after buying an additional 2,143 shares during the period.

Mirum Pharmaceuticals Price Performance

The firm has a market capitalization of $6.30 billion, a PE ratio of -6.27 and a beta of 0.75. The company has a debt-to-equity ratio of 1.28, a quick ratio of 2.74 and a current ratio of 2.86. The business's 50 day moving average is $89.51 and its two-hundred day moving average is $98.44.

About Mirum Pharmaceuticals

Mirum Pharmaceuticals, Inc is a biopharmaceutical company focused on developing and commercializing treatments for rare diseases, particularly disorders affecting the liver and bile acid pathways. The company's medicines are designed to address conditions with limited treatment options and to improve outcomes for children and adults living with serious chronic diseases.

Mirum's lead product is LIVMARLI (maralixibat), an oral bile acid transport inhibitor used to treat cholestatic pruritus, or severe itching caused by impaired bile flow, in patients with Alagille syndrome and progressive familial intrahepatic cholestasis.

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