Harmony Biosciences (NASDAQ:HRMY) Shares Gap Down on Disappointing Earnings

Harmony Biosciences Holdings, Inc. (NASDAQ:HRMY) shares gapped down before the market opened on Wednesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $37.02, but opened at $34.50. Harmony Biosciences shares last traded at $33.59, with a volume of 423,798 shares trading hands.

The company reported $0.81 EPS for the quarter, missing the consensus estimate of $1.09 by ($0.28). Harmony Biosciences had a net margin of 18.88% and a return on equity of 20.06%. The company had revenue of $268.92 million for the quarter, compared to analysts’ expectations of $272.05 million. During the same quarter in the prior year, the firm earned $1.08 earnings per share. The company’s revenue was up 12.3% on a year-over-year basis.

Wall Street Analysts Forecast Growth

HRMY has been the topic of a number of recent research reports. Oppenheimer restated an “outperform” rating on shares of Harmony Biosciences in a research note on Thursday, September 24th. Wolfe Research started coverage on Harmony Biosciences in a research report on Wednesday, August 26th. They issued an “outperform” rating and a $60.00 target price on the stock. HC Wainwright reaffirmed a “buy” rating and set a $55.00 price target on shares of Harmony Biosciences in a research note on Tuesday, October 13th. LADENBURG THALM/SH SH initiated coverage on Harmony Biosciences in a report on Thursday, October 15th. They set a “buy” rating and a $55.00 price target for the company. Finally, UBS Group reissued a “neutral” rating and issued a $37.00 price target on shares of Harmony Biosciences in a research note on Wednesday, August 5th. One research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $48.00.

Insider Activity

In related news, insider Kumar Budur sold 35,852 shares of the company’s stock in a transaction on Friday, September 18th. The shares were sold at an average price of $43.05, for a total value of $1,543,428.60. Following the completion of the sale, the insider directly owned 13,115 shares in the company, valued at approximately $564,600.75. This represents a 73.22% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Over the last three months, insiders have sold 72,406 shares of company stock valued at $3,108,520. 11.00% of the stock is currently owned by insiders.

Institutional Trading of Harmony Biosciences

A number of institutional investors and hedge funds have recently made changes to their positions in HRMY. BlackRock Inc. bought a new stake in shares of Harmony Biosciences during the 2nd quarter worth about $258,583,000. Dimensional Fund Advisors LP raised its stake in shares of Harmony Biosciences by 13.4% in the 1st quarter. Dimensional Fund Advisors LP now owns 2,076,510 shares of the company’s stock valued at $58,157,000 after acquiring an additional 245,784 shares in the last quarter. Renaissance Technologies LLC raised its stake in shares of Harmony Biosciences by 0.6% in the 1st quarter. Renaissance Technologies LLC now owns 1,077,371 shares of the company’s stock valued at $30,177,000 after acquiring an additional 6,900 shares in the last quarter. venBio Partners LLC bought a new position in shares of Harmony Biosciences in the 2nd quarter valued at approximately $17,192,584. Finally, Tieton Capital Management LLC acquired a new stake in Harmony Biosciences in the 2nd quarter worth approximately $11,170,000. Institutional investors and hedge funds own 86.23% of the company’s stock.

Harmony Biosciences Trading Down 10.5%

The company has a fifty day moving average of $39.73 and a two-hundred day moving average of $34.74. The company has a current ratio of 3.48, a quick ratio of 3.45 and a debt-to-equity ratio of 0.13. The stock has a market capitalization of $1.93 billion, a price-to-earnings ratio of 10.71, a price-to-earnings-growth ratio of 0.31 and a beta of 1.00.

Harmony Biosciences Company Profile

Harmony Biosciences Holdings, Inc is a commercial-stage biopharmaceutical company focused on developing and providing therapies for patients with rare neurological disorders. The company’s activities center on conditions involving sleep-wake regulation and other central nervous system disorders where treatment options may be limited.

Harmony’s principal product is WAKIX (pitolisant), an oral, non-scheduled treatment that acts as a histamine-3 receptor antagonist/inverse agonist. In the United States, WAKIX is approved for the treatment of excessive daytime sleepiness or cataplexy in adults with narcolepsy and for excessive daytime sleepiness in pediatric patients aged 6 and older with narcolepsy.