Day One Biopharmaceuticals (NASDAQ:DAWN) Shares Gap Down After Earnings Miss

Day One Biopharmaceuticals, Inc. (NASDAQ:DAWN) gapped down before the market opened on Wednesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $12.02, but opened at $10.90. Day One Biopharmaceuticals shares last traded at $11.0480, with a volume of 798,541 shares traded.

The company reported ($0.21) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.17) by ($0.04). Day One Biopharmaceuticals had a negative return on equity of 23.43% and a negative net margin of 67.85%.The company had revenue of $53.72 million during the quarter, compared to analysts’ expectations of $49.81 million.

More Day One Biopharmaceuticals News

Here are the key news stories impacting Day One Biopharmaceuticals this week:

• Positive Sentiment: Wedbush raised its price target to $30 and kept an “outperform” rating, signaling strong upside potential from current levels and offering a bullish institutional endorsement. Wedbush PT Raise
• Positive Sentiment: Revenue beat — Q4 revenue came in above consensus (company reported ~$53.7M vs est. ~$49.8M), described as record revenue growth, which supports top‑line momentum and future commercial prospects. Earnings Highlights
• Neutral Sentiment: Analyst roundup pieces summarizing multiple firms’ views are circulating, providing varied takes that can sustain volatility as investors parse differing price targets and ratings. Analyst Roundup
• Neutral Sentiment: Short-interest report shows 0 shares noted for the period (data appears anomalous), so current short-interest metrics provide no clear signal and should be treated cautiously.
• Neutral Sentiment: Earnings materials and full transcripts are available for deeper review (presentation and call transcripts), useful for investors who want management commentary on guidance, commercial rollout and cost trajectory. Earnings Presentation
• Negative Sentiment: EPS missed expectations — Q4 GAAP loss was $0.21 per share vs. the consensus loss of $0.17, highlighting ongoing profitability pressure and contributing to near-term downside risk. EPS Miss Coverage
• Negative Sentiment: Some analysts trimmed price targets (Needham cut to $17; HC Wainwright lowered to $22) even while keeping “buy” ratings — these reductions reduce consensus upside and can weigh on sentiment despite revenue strength. Analyst PT Changes

Analyst Ratings Changes

Several equities research analysts recently issued reports on DAWN shares. HC Wainwright dropped their price target on shares of Day One Biopharmaceuticals from $25.00 to $22.00 and set a “buy” rating on the stock in a research note on Wednesday. JPMorgan Chase & Co. raised their target price on Day One Biopharmaceuticals from $26.00 to $27.00 and gave the company an “overweight” rating in a research note on Friday, November 7th. Needham & Company LLC dropped their target price on Day One Biopharmaceuticals from $18.00 to $17.00 and set a “buy” rating on the stock in a research report on Wednesday. Weiss Ratings reissued a “sell (d-)” rating on shares of Day One Biopharmaceuticals in a report on Monday, December 29th. Finally, TD Cowen initiated coverage on Day One Biopharmaceuticals in a research note on Tuesday, January 13th. They set a “buy” rating and a $34.00 price objective for the company. One equities research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, Day One Biopharmaceuticals has a consensus rating of “Moderate Buy” and a consensus target price of $26.14.

Insider Buying and Selling

In other news, CFO Charles N. York II sold 6,065 shares of the firm’s stock in a transaction dated Tuesday, February 17th. The shares were sold at an average price of $11.60, for a total value of $70,354.00. Following the transaction, the chief financial officer directly owned 312,025 shares in the company, valued at approximately $3,619,490. This trade represents a 1.91% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, insider Lauren Merendino sold 5,814 shares of the business’s stock in a transaction dated Tuesday, February 17th. The shares were sold at an average price of $11.60, for a total transaction of $67,442.40. Following the sale, the insider directly owned 60,157 shares of the company’s stock, valued at approximately $697,821.20. This represents a 8.81% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 36,461 shares of company stock worth $422,948. Company insiders own 6.20% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Federated Hermes Inc. acquired a new stake in Day One Biopharmaceuticals in the third quarter worth $39,000. Mirae Asset Global Investments Co. Ltd. increased its holdings in shares of Day One Biopharmaceuticals by 26.0% in the 4th quarter. Mirae Asset Global Investments Co. Ltd. now owns 4,989 shares of the company’s stock worth $46,000 after acquiring an additional 1,029 shares during the period. Ameritas Investment Partners Inc. lifted its position in Day One Biopharmaceuticals by 44.5% in the 2nd quarter. Ameritas Investment Partners Inc. now owns 7,349 shares of the company’s stock valued at $48,000 after purchasing an additional 2,264 shares during the last quarter. Quarry LP acquired a new position in Day One Biopharmaceuticals during the 3rd quarter valued at about $49,000. Finally, Entropy Technologies LP bought a new position in Day One Biopharmaceuticals in the 2nd quarter worth about $67,000. Institutional investors and hedge funds own 87.95% of the company’s stock.

Day One Biopharmaceuticals Stock Down 2.6%

The firm’s 50 day simple moving average is $10.69 and its 200 day simple moving average is $8.77. The company has a market cap of $1.10 billion, a price-to-earnings ratio of -10.34 and a beta of -1.26.

Day One Biopharmaceuticals Company Profile

Day One Biopharmaceuticals, Inc (NASDAQ: DAWN) is a clinical-stage biopharmaceutical company focused on the discovery and development of targeted therapies for oncology. The company employs a precision medicine approach, leveraging biomarker-driven strategies to identify patient populations most likely to respond to its investigational compounds. By concentrating on well-validated molecular drivers of cancer, Day One seeks to deliver first-in-class or best-in-class therapies with the potential for meaningful clinical benefit.

The company’s pipeline includes several small-molecule candidates in various stages of development.