Alert: Mixed Investment/Fundamental Signals (8/26/24)-HUTCHMED (China) Limited (NASDAQ: HCM)

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HUTCHMED (China) Limited (NASDAQ: HCM). Extremely significant negative changes in investment behavior have recently occurred: the stock’s recent price decline challenged its longer term uptrend, its shorter term price trend turned down, its longer term price trend turned down, and negative upside/downside volume developed.

Positive development: the stock’s power rating rose above 70. Negative development: the consensus estimate for December, 2025 decreased significantly.

In light of these highly negative signals we are reviewing our current Overall Rating of C. We would view the shares with caution pending completion of this review in the next several days.

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Current PriceTarget Research Rating

HCM’s future returns on capital are forecasted to be in line with the cost of capital. Accordingly, the company is expected to continue to be Value Creation neutral.

HUTCHMED (China) Limited has a current Value Trend Rating of C (Low Neutral). The Value Trend Rating reflects very contradictory signals from PTR’s two proprietary measures of a stock’s attractiveness. HUTCHMED (China) Limited has a very low Appreciation Score of 8 but a good Power Rating of 80, and the Low Neutral Value Trend Rating results.

Recent Price Action

On 8/26/24, HUTCHMED (China) Limited (NASDAQ: HCM) stock declined slightly by -0.5%, closing at $17.17. However, trading volume in this decline was exceptionally low at 39% of normal. Relative to the market the stock has been strong over the last nine months but has declined -7.0% during the last week.

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