Sign InSummary
T2 Biosystems, Inc. has experienced a substantial decrease in its stock price and bearish sentiment following the revelation of its Q3 preliminary earnings and a reverse stock split, leading to a recommendation to hold the stock until there are signs of recovery or improved fundamentals (October 12, 2023).
Company Overview
T2 Biosystems, Inc. (Ticker: TTOO), traded on the NASDAQ exchange, is a firm focusing on in vitro diagnostics.
Recent Performance
As of the last trading day (October 12, 2023), TTOO closed at $0.17, a substantial decrease of 43.87% from its previous close. The stock recorded a high of $0.23 and a low of $0.16 for the day. This is somewhat removed from the company's 52-week peak of $2.93 and well above the trough of $0.05. The reported trade volume for the day was significant at 170.36 million, compared to the usual daily volume of 109.65 million.
Market Capitalization and Share Statistics
T2 Biosystems currently has a market cap of $58.04 million, with 333.58 million shares outstanding.
Technical Indicators
The company's RSI (Relative Strength Index) stands at 40, suggesting the stock is not in an overbought or oversold condition. The stock is currently trading below both its 50-day moving average of $0.32 and 200-day moving average of $0.53. The MACD, another crucial momentum indicator, is showing a negative 3-month trend (-0.04) for TTOO.
Fundamental Analysis
T2 Biosystems has an EPS of -$3.07, which runs indicative of recent losses. It also has a P/E ratio of -0.06, indicating that from an earnings perspective, the stock is not currently profitable.
News Impact
The firm just announced its Q3 2023 preliminary earnings and business updates, which partly coincided with the stock's significant downswing. Earlier, the company had also revealed a 1-for-100 reverse stock split, which can often lead to reduced stock prices, clarifying the price trend.
Predictions and Evaluation
Taking into account the stock's current momentum, it could potentially trade between its support level of $0.16 and resistance level of $0.18 in the short-term. However, the substantial move downward motivated by the reverse split and preliminary earnings results, which surpassed average volume, points towards existing bearish sentiment.
Therefore, for the next trading day (October 13, 2023), it may continue to experience bearish momentum, mainly if investors' interpretation of the earnings announcement remains negative. Similarly, for the coming week, the price may oscillate around these levels unless a new catalyst emerges.
Final Evaluation
Factoring in T2 Biosystems' recent substantial decrease in its stock price, the ongoing bearish sentiment and the reverse stock split, the recommendation for the stock would be a Hold. Although the company shows signs of struggle, long-term investors might wait for more concrete signs of recovery or improved fundamentals before making any further investing decisions.
