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

Shares of Day One Biopharmaceuticals, Inc. (NASDAQ:DAWN) gapped down before the market opened on Wednesday following a dissappointing earnings announcement. 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 the consensus estimate of ($0.17) by ($0.04). The company had revenue of $53.72 million during the quarter, compared to analyst estimates of $49.81 million. Day One Biopharmaceuticals had a negative net margin of 67.85% and a negative return on equity of 23.14%.

Day One Biopharmaceuticals News Roundup

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

• Positive Sentiment: Q4 revenue beat and product momentum: Day One reported Q4 net product revenue that topped estimates and highlighted OJEMDA™ momentum and record revenue growth for 2025. Article Title
• Positive Sentiment: Company reaffirmed 2026 outlook and guidance: Day One reiterated 2026 U.S. net product revenue guidance of $225–$250M and disclosed the January acquisition of Mersana to expand its pipeline. Article Title
• Positive Sentiment: Analyst uplift from Wedbush: Wedbush raised its price target sharply to $30 and keeps an outperform rating, signaling at least one broker sees substantial upside vs. the current price. Article Title
• Neutral Sentiment: Other analysts trimmed targets but kept buy ratings: Needham cut its target to $17 and HC Wainwright trimmed to $22, yet both maintain positive ratings — a mixed signal on near-term valuation. Article Title
• Neutral Sentiment: Full earnings materials and transcripts available: The earnings slide deck and call transcript are posted for investors to review management commentary and guidance details. Article Title
• Neutral Sentiment: Short-interest data unclear: February short-interest reporting here shows effectively 0 shares (data appears inconsistent/NaN); no clear short-squeeze signal from the published short-interest figures.
• Negative Sentiment: EPS miss pressures sentiment: Reported EPS came in at ($0.21), missing the consensus of ($0.17); that earnings shortfall helps explain the stock selling off despite the revenue beat. Article Title

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on DAWN. Needham & Company LLC reduced their price objective on shares of Day One Biopharmaceuticals from $18.00 to $17.00 and set a “buy” rating on the stock in a research note on Wednesday. HC Wainwright reduced 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 report on Wednesday. TD Cowen initiated coverage on shares of Day One Biopharmaceuticals in a research report on Tuesday, January 13th. They set a “buy” rating and a $34.00 price objective for the company. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Day One Biopharmaceuticals in a report on Monday, December 29th. Finally, Piper Sandler boosted their price target on Day One Biopharmaceuticals from $25.00 to $26.00 and gave the stock an “overweight” rating in a report on Wednesday, November 5th. One investment analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, Day One Biopharmaceuticals presently has a consensus rating of “Moderate Buy” and a consensus price target of $26.14.

Insider Buying and Selling

In related news, CEO Jeremy Bender sold 15,459 shares of the firm’s stock in a transaction on Tuesday, February 17th. The stock was sold at an average price of $11.60, for a total transaction of $179,324.40. Following the sale, the chief executive officer owned 204,603 shares of the company’s stock, valued at $2,373,394.80. This trade represents a 7.02% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, insider Adam Dubow sold 6,395 shares of the company’s stock in a transaction dated Tuesday, February 17th. The stock was sold at an average price of $11.60, for a total value of $74,182.00. Following the completion of the transaction, the insider directly owned 72,694 shares of the company’s stock, valued at approximately $843,250.40. The trade was a 8.09% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 36,461 shares of company stock worth $422,948 in the last ninety days. Insiders own 6.20% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in DAWN. Royal Bank of Canada grew its holdings in Day One Biopharmaceuticals by 40.4% during the 1st quarter. Royal Bank of Canada now owns 185,733 shares of the company’s stock worth $1,474,000 after acquiring an additional 53,459 shares during the last quarter. AQR Capital Management LLC lifted its holdings in shares of Day One Biopharmaceuticals by 601.4% during the first quarter. AQR Capital Management LLC now owns 618,627 shares of the company’s stock worth $4,906,000 after purchasing an additional 530,429 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its stake in shares of Day One Biopharmaceuticals by 6.0% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 37,992 shares of the company’s stock worth $302,000 after purchasing an additional 2,149 shares during the last quarter. Millennium Management LLC grew its stake in shares of Day One Biopharmaceuticals by 587.2% in the first quarter. Millennium Management LLC now owns 1,320,095 shares of the company’s stock worth $10,468,000 after purchasing an additional 1,127,995 shares during the last quarter. Finally, Goldman Sachs Group Inc. increased its holdings in Day One Biopharmaceuticals by 232.4% in the first quarter. Goldman Sachs Group Inc. now owns 1,569,918 shares of the company’s stock valued at $12,449,000 after purchasing an additional 1,097,679 shares during the period. Institutional investors own 87.95% of the company’s stock.

Day One Biopharmaceuticals Trading Down 9.1%

The firm has a market capitalization of $1.12 billion, a P/E ratio of -10.61 and a beta of -1.26. The company has a 50-day moving average of $10.67 and a 200-day moving average of $8.76.

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.