Sign InSummary
T2 Biosystems, Inc. (TTOO) experienced a significant positive swing in its stock performance on August 2, 2023, but its high volatility and low market cap pose risks for investors, despite recent positive news and upcoming investor conferences.
Company Overview
T2 Biosystems, Inc. (Ticker: TTOO) is a company that specializes in the rapid detection of sepsis-causing pathogens and antibiotic resistance genes. The company is traded on the NASDAQ exchange.
Fundamental Analysis
On its last close on August 02, 2023, the price of T2 Biosystems Ltd. stock was 0.243USD, representing a change of 0.09 (54.29%) from the previous trading day. This indicates a significant positive swing in the stock’s performance.
The stock's price high and low for the same day were 0.277 and 0.148 respectively. The year-to-date high and low points of the stock stood at 15 and 0.054 respectively. The very high fluctuation indicates considerable volatility in T2 Biosystems, Inc. stock price movement.
The company's Market Cap at the end of the trading day stood at approximately 6.04 million. This indicates a relatively small capitalization, which might signify a higher risk due to lower liquidity.
Regarding trading volume, TTOO had a volume of approximately 286.46 million, well above its average volume of 59.05 million. This surge in trading volume could signify an increasing interest in the company's shares.
The company's EPS stands at -8.18, indicating that the company is currently not profitable. The company's PE Ratio is at -0.03, which may raise concerns about the company's ability to generate earnings at the current share price.
Technical Analysis
The company's stock has an RSI14 of 84, indicating that the stock is currently overbought and may be due for a price correction. The 50 Day Moving Average of the stock stands at 0.10508 while the 200 Day Moving Average is significantly higher at 0.881245. The MACD (3-month) is 0.013888 hinting a recent bullish trend.
News Analysis and Predictions
Relevant news for T2 Biosystems, Inc. includes a recent extension to regain Nasdaq compliance which may have been a major factor contributing to the recent surge in the company’s stock price. This means that T2 Biosystems gets a chance to potentially avoid delisting, thereby possibly providing more stability for its stock value.
Forthcoming investor conferences in August 2023 may also provide insights into the company's future plans and could impact the stock's dynamics depending on the outcomes and announcements made during these conferences.
Considering the stock's recent performance, along with the current RSI and the company's upcoming activities, it's expected that the stock's price could range between 0.15 to 0.25 for the next trading day, August 03, 2023. The price estimate for the upcoming week could be anticipated to fluctuate in the range of 0.10 to 0.35.
Final Evaluation
The categorization of the TTOO stock comes with a degree of risk, largely due to the stock's present technical indicators coupled with the company’s fundamental figures. The stock currently emits a 'high risk, high reward' profile due to its significant price volatility and low market cap.
The recent positive news and the upcoming investor conferences may provide some prospective bullish sentiment among investors, but the current RSI indicating overbuying and the negative EPS should not be overlooked.
Although it may hold potential for profiting off short-term price movements, it is advised to extensively evaluate the company's future plans and earnings capacity before making an investment decision.
As such, for risk-tolerant investors, T2 Biosystems, Inc. (Ticker: TTOO)'s stock may be classified as a 'Hold'. However, for risk-averse investors, it may be prudent to 'Sell' or avoid buying until the company shows more consistent performance and improved profitability.
