Sign InT2 Biosystems' Stock Performance Remains Volatile, Evaluation Suggests 'Hold'
Summary
T2 Biosystems, Inc. is a Nasdaq-listed company specializing in developing diagnostic tools for laboratories and hospitals, but with a concerning financial performance and recent volatility in its stock price, it is evaluated as a 'Hold' for investors as of August 23, 2023.
Company Overview
T2 Biosystems, Inc., denoted by ticker TTOO, is a Nasdaq-listed company within the healthcare sector. The company specializes in developing in vitro diagnostic tools for laboratories and hospitals.
Stock Price Performance
T2 Biosystems' last closing price was $0.48 on the market trading day of Thursday, August 23, 2023, exhibiting a decrease of -0.00 (-0.52%). It marked a trading day low and high of $0.44 and $0.49, respectively. The stock's 52-week range was notably large, with a low of $0.05 and a high of $6.80.
The company's market capitalization stands at approximately $174.45 million, with a trading volume of 58.35 million shares and an average trading volume of approximately 110.27 million shares.
Technical Indicators
From a technical perspective, the Relative Strength Index (RSI) for 14 periods is 58. T2 Biosystems' 50-day moving average rests at $0.19, considerably lower than its 200-day moving average of $0.77. This discrepancy shows recent bullish momentum for TTOO.
The 3-month MACD is $0.12, hinting at a potential bullish momentum. The ATR is 19.53, suggesting a high level of volatility, and the Stop-loss level is set at $0.45. The main support and resistance levels are identified at $0.45 and $0.56, respectively.
Fundamental Analysis
Financially, T2 Biosystems displays a concerning performance, having reported a negative EPS of -$2.38 with a negative PE ratio of -0.2. This indicates an unprofitability that should be evaluated in combination with the company's future growth prospects.
Recent News and Events
Looking at recent news about T2 Biosystems, the company announced that it will seek approval for a reverse stock split in a range between 1-for-50 and 1-for-150 on September 12. This decision suggests that the company is taking steps to maintain its NASDAQ listing.
Meanwhile, CEO John Sperzel emphasized the differentiation and potential importance of the company's sepsis products, which could provide a source of future revenue and growth.
However, the stock's performance has been generally volatile. After an upswing due to "meme-like buzz," it has recently retreated, with the share price notably falling after a three-day winning streak.
Projection and Final Evaluation
Given the highly volatile nature of the stock, the stock price on the next trading day, August 24, 2023, might remain within the range of its immediate support and resistance levels, i.e., $0.45-$0.56. For the upcoming week, anticipating a concrete trend would be challenging, considering the stock's recent volatility coupled with the upcoming decision about the reverse stock split.
Based on the noted volatility, unfavorable fundamentals, and uncertainty surrounding the reverse stock split, T2 Biosystems' stock, TTOO, is evaluated as a 'Hold.' Investors should tread with caution while keeping a close eye on company developments and industry news.
