Halozyme Therapeutics Stock Gutted By Revenue Miss, Downgrade

HALO just breached a supportive trendline

Managing Editor
May 11, 2018 at 10:03 AM
facebook twitter linkedin


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.
 

If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

Schaeffer's Investment Research Master Portfolio Trial
 


 


 
Special Offers from Schaeffer's Trading Partners