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Fundamental Analysis: TTOO Stock Indicates Bearish Trend with Negative EPS

StockInvest.us, 2 months ago

T2 Biosystems Fundamental Analysis

T2 Biosystems, Inc. (TTOO) is a company listed on the NASDAQ with a market capitalization of $96.17 million. The company has an outstanding share count of 333.58 million.

The latest closing price of the TTOO stock was $0.30 on September 20, 2023, marking an 11.00% decrease - a significant bearish trend. The day's high and low were $0.35 and $0.29 respectively. The annual trend shows a significant variance, with a 52-week high of $5.7 and a low of just $0.05.

The company's Earnings Per Share (EPS) stands at -$4.86, indicating that it is not currently generating a positive income. This is reflected in the Price to Earnings (P/E) ratio, which is negative at -0.06.

The stock's daily trading volume was approximately 59.30 million shares, signalling below-average activity compared to its average volume of 114.37 million. This means that TTOO's trading activity was less intense on the date in focus.

Observing the news from recent days, it appears that TTOO has been awash with significant events. These include the FDA granting the company clearance to start marketing its biothreat panel in America, a move seen as potentially altering its near-term future. Despite this positive news, the stock extended its losing streak, indicating that investors may need more convincing about the company's prospects.

Technical Analysis

On the technical front, the stock exhibits an RSI14 figure of 48, which suggests a neutral outlook - neither overbought or oversold.

T2 Biosystems TTOO's 50-day moving average ($0.28) is slightly less than its last close, indicating a short-term bullish trend. However, the 200-day moving average ($0.62) is significantly higher than the last close, which indicates a longer term bearish trend. The Moving Average Convergence Divergence (MACD) factor of -0.06 also signals a downward trend.

The Average True Range (ATR) is 26.71, a high value which suggests potential volatility in the coming days. TTOO also shows a support level at $0.25 and a resistance level at $0.31, providing clear benchmarks for future price movements.


The next trading day is September 21, 2023. Given the current price trend, oscillating trading volume and high ATR, it's likely we might see more price fluctuations. Despite the recent bearish trends, the positive news of the FDA approval may provide a boost to the stock, taking it possibly to the next resistance level of $0.31.

Over the course of the upcoming week, provided the FDA news continues to get factored into the pricing, TTOO could potentially exhibit a bullish trend. However, considering its significant year-to-date decrease from its 52-week high, cautious optimism should be observed.

Final Evaluation - HOLD

Considering the stock's fundamentals and technical outlook, TTOO is a Hold. While the company's FDA clearance for its biothreat panel is positive and might nudge the stock price closer to its resistance level, it's also crucial to note the company's significant losses underscored by its negative EPS.

Furthermore, the long-term bearish trend indicated by the 200-day moving average, as well as the significant decrease from the 52-week high, justifies a wait-and-see stance. Therefore, acknowledging the potential but also the risks, TTOO is suggested to be a Hold.

Check full T2 Biosystems forecast and analysis here.