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Harmony Biosciences Holdings, Inc. (HRMY) stock is up this year, rising 6% so far. And the biopharmaceutical firm focused on rare neurological disorders could rise even more due to strong sales and new treatments in the pipeline. But another likely reason is Big Money lifting the stock.
Big Money Starts to Like Harmony Biosciences
So, what’s Big Money? Said simply, that’s when a stock goes up in price alongside chunky volumes. It’s indicative of institutions betting on the shares.
Smart money managers are always looking for the next hot stock. And Harmony Biosciences has many fundamental qualities that are attractive.
This sets up well for the stock going forward. But how the shares have been trading points to more upside. As I’ll show you, the Big Money has been taking interest in the shares.
You see, fund managers are always looking to bet on the next outlier stocks…the best in class. They spend countless hours sizing up companies, reading reports, speaking to analysts…you name it. When they find a company firing on all cylinders, they pounce in a big way.
That’s why I’ve learned how critical it is to gauge Big Money demand for shares. To show you what I mean, have a look at the Big Money signals HRMY has made. The last few weeks have seen Big Money activity, too. Each green bar signals big trading volumes as the stock ramped up in price:
Source: www.mapsignals.com
In the last year, the stock attracted three Big Money buy signals. Generally speaking, recent green bars could mean more upside is ahead.
Now, let’s check out technical action grabbing my attention:
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Year-to-date outperformance vs. Health Care Select Sector SPDR ETF (+13.5% vs. XLV)
Outperformance is important for leading stocks.
Harmony Biosciences Fundamental Analysis
Next, it’s a good idea to check under the hood. Meaning, I want to make sure the fundamental story is strong too. As you can see, Harmony Biosciences has been growing sales and is profitable. Take a look:
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1-year sales growth rate (+91.2%)
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Profit margin (+11.3%)
Source: FactSet
Marrying great fundamentals with technically superior stocks is a winning recipe over the long-term.
In fact, HRMY has recently become a top-rated stock at my research firm, MAPsignals. That means the stock has buy pressure, strong technicals, and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.
HRMY has a lot of qualities that are attracting Big Money. It made this list for the first time recently on 04/26/2022…and losing 4.0% since. But I wouldn’t be surprised to see it grow more in the years ahead. The blue bar below shows when Harmony Biosciences was a top pick: