A better buy-in window may exist right now for HUTCHMED (China) Limited (HCM)

HUTCHMED (China) Limited (NASDAQ: HCM) stock jumped 5.95% on Monday to $18.35 against a previous-day closing price of $17.32. With 0.55 million shares changed hands, the volume of the stock remained lighter than its average volume of 0.62 million shares. During the session, the Drug Manufacturers – General company that operates in wider Healthcare sector, reached to the highest price of $19.27 whereas the lowest price it dropped to was $17.42. The 52-week range on HCM shows that it touched its highest point at $30.57 and its lowest point at $7.39 during that stretch. It currently has a 1-year price target of $29.41. Beta for the stock currently stands at 1.00.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of HCM was up-trending over the past week, with a rise of 3.85%, but this was up by 38.49% over a month. Three-month performance surged to 110.19% while six-month performance rose 46.45%. The stock lost -38.71% in the past year, while it has gained 24.15% so far this year.

Float and Shares Shorts:

At present, 169.86 million HCM shares are outstanding with a float of 88.72 million shares on hand for trading. On Oct 13, 2022, short shares totaled 2.42 million, which was 1.40% higher than short shares on Sep 14, 2022. In addition to Mr. Chi Keung To ACGI, B.Sc., BSc, M.B.A., MBA as the firm’s Exec. Chairman, Dr. Weiguo Su B.Sc., Ph.D. serves as its CEO, Chief Scientific Officer & Exec. Director.

Institutional Ownership:

Through their ownership of 29.87% of HCM’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 7.41% of HCM, in contrast to 13.11% held by mutual funds. Shares owned by individuals account for –. As the largest shareholder in HCM with 4.67% of the stake, M&G Investment Management Ltd. holds 8,075,307 shares worth 8,075,307. A second-largest stockholder of HCM, Capital Research & Management Co, holds 4,095,069 shares, controlling over 2.37% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in HCM, holding 2,614,381 shares or 1.51% stake. With a 1.40% stake in HCM, the M&G Investment Funds is the largest stakeholder. A total of 2,421,886 shares are owned by the mutual fund manager. The Schroder ISF – Hong Kong Equity, which owns about 0.90% of HCM stock, is the second-largest Mutual Fund holder. It holds 1,551,886 shares valued at 22.94 million. Allianz Global Investors Fund – O holds 0.62% of the stake in HCM, owning 1,065,900 shares worth 15.75 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for HCM since 9 analysts follow the stock currently. There are 8 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 1 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With HCM analysts setting a high price target of $50.00 and a low target of $15.00, the average target price over the next 12 months is $31.08. Based on these targets, HCM could surge 172.48% to reach the target high and fall by -18.26% to reach the target low. Reaching the average price target will result in a growth of 69.37% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. HCM will report FY 2022 earnings on 03/11/2024. Analysts have provided yearly estimates in a range of -$1.75 being high and -$3.22 being low. For HCM, this leads to a yearly average estimate of -$2.23. Based on analyst estimates, the high estimate for the next quarter is -$1.02 and the low estimate is -$1.02. The average estimate for the next quarter is thus -$1.02.

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