Analysts remain mostly bullish on the biotech stock
Halozyme Therapeutics, Inc. (NASDAQ:HALO) stock is down 9.3% to trade at $18.12 this morning, after the biotech company reported first-quarter revenue short of analysts' forecasts, as well as a weaker-than-expected full-year guidance. In response, Halozyme was downgraded to "underweight" from "equal weight" at Barclays.
HALO stock is now on track for its worst day since January 2017. The shares reached a multi-year high of $21.48 on March 20, but promptly pulled back, although the dip was contained by their 160-day moving average. However, the price action today has the security set to close below this trendline for the first time since September.
Additional downgrades and/or price-target cuts could pressure the biotech stock even lower. Of the seven brokerages covering HALO, four rate it a "strong buy," with only a single "sell" on the books. Furthermore, the security's average 12-month price target sits at $20.90, a 13% premium to the stock's current perch.
Elsewhere, short interest has been plummeting on the equity over the past year, down almost 50% from this point last year. But considering the recent technical weakness, these bears could be inclined to target HALO shares once again -- another potential headwinds for the stock.