Healthy Upside Potential: Harmony Biosciences Holdings Inc. (HRMY)

Harmony Biosciences Holdings Inc. (NASDAQ: HRMY) stock jumped 1.20% on Tuesday to $49.66 against a previous-day closing price of $49.07. With 0.63 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.5 million shares. During the session, the Biotechnology company that operates in wider Healthcare sector, reached to the highest price of $49.90 whereas the lowest price it dropped to was $47.68. The 52-week range on HRMY shows that it touched its highest point at $62.08 and its lowest point at $31.54 during that stretch. It currently has a 1-year price target of $65.88.

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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 HRMY was up-trending over the past week, with a rise of 1.26%, but this was down by -13.17% over a month. Three-month performance dropped to -1.02% while six-month performance fell -2.15%. The stock gained 47.18% in the past year, while it has lost -9.87% so far this year. A look at the trailing 12-month EPS for HRMY yields 2.55 with Next year EPS estimates of 2.70. For the next quarter, that number is 0.58. This implies an EPS growth rate of 152.10% for this year and -0.77% for next year.

Float and Shares Shorts:

At present, 59.23 million HRMY shares are outstanding with a float of 58.29 million shares on hand for trading. On Oct 13, 2022, short shares totaled 5.76 million, which was 9.74% higher than short shares on Sep 14, 2022. In addition to Mr. Jeffrey S. Aronin as the firm’s Founder & Non-Exec. Chairman, Mr. John Charles Jacobs M.B.A. serves as its Pres, CEO & Director.

Institutional Ownership:

Through their ownership of 89.99% of HRMY’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 46.63% of HRMY, in contrast to 39.09% held by mutual funds. Shares owned by individuals account for 22.41%. As the largest shareholder in HRMY with 9.47% of the stake, Fidelity Management & Research Co holds 5,615,190 shares worth 5,615,190. A second-largest stockholder of HRMY, BlackRock Fund Advisors, holds 4,258,297 shares, controlling over 7.18% of the firm’s shares. The Vanguard Group, Inc. is the third largest shareholder in HRMY, holding 2,933,397 shares or 4.95% stake. With a 5.08% stake in HRMY, the HBM Healthcare Investments is the largest stakeholder. A total of 3,012,090 shares are owned by the mutual fund manager. The iShares Core S&P Small Cap ETF, which owns about 3.69% of HRMY stock, is the second-largest Mutual Fund holder. It holds 2,190,327 shares valued at 120.69 million. Fidelity Growth Company Fund holds 3.08% of the stake in HRMY, owning 1,826,553 shares worth 100.64 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for HRMY since 8 analysts follow the stock currently. There are 6 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 1 believe that the stock is worth HOLDING, 1 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 HRMY analysts setting a high price target of $71.00 and a low target of $52.00, the average target price over the next 12 months is $65.88. Based on these targets, HRMY could surge 42.97% to reach the target high and rise by 4.71% to reach the target low. Reaching the average price target will result in a growth of 32.66% 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. HRMY will report FY 2022 earnings on 02/26/2024. Analysts have provided yearly estimates in a range of $3.10 being high and $2.66 being low. For HRMY, this leads to a yearly average estimate of $2.78. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Harmony Biosciences Holdings Inc. surprised analysts by $1.34 when it reported $1.44 EPS against a consensus estimate of $0.10. The surprise factor in the prior quarter was -$0.06. Based on analyst estimates, the high estimate for the next quarter is $0.84 and the low estimate is $0.47. The average estimate for the next quarter is thus $0.58.

Summary of Insider Activity:

Insiders traded HRMY stock several times over the past three months with 3 Buys and 29 Sells. In these transactions, 68,000 shares were bought while 1,411,384 shares were sold. The number of buy transactions has increased to 15 while that of sell transactions has risen to 116 over the past year. The total number of shares bought during that period was 262,984 while 4,436,287 shares were sold.

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