Sign InSummary
T2 Biosystems, Inc. (ticker TTOO) has recently seen its stock reach a closing price of $0.35, with mixed sentiment and potential downward pressure due to a mass share resale announcement, making it a risky and uncertain investment as of September 5, 2023.
Technical Analysis
T2 Biosystems, Inc., ticker TTOO, HAS A recent closing price of $0.35 as of September 5, 2023. Alongside a relatively small intraday fluctuation, the highest and lowest trade prices were $0.40 and $0.34 respectively. Compared to average volumes, the trading volume on this day was significantly lower at 54.45 million. The year has seen the stock reach a high of $6.50 and a low of $0.05, with a market capitalization of $115.42 million.
TTOO's relative strength index (RSI14) measure stood at 32, representing somewhat oversold conditions. Generally, an RSI value below 30 could imply a potential recovery. The 50-day moving average was $0.23, compared to a much higher 200-day moving average at $0.71. The Moving Average Convergence Divergence (MACD) also had a positive momentum of 0.105495 over the past three months. In terms of volatility, the ATR stood at 24.43, implying significant volatility.
The company's support level stood at $0.3425, and the resistance level at $0.35. The stop-loss was calculated at $0.32.
Fundamental Analysis
T2 Biosystems, Inc.'s EPS stood at -$3.1 while the PE ratio was -0.11, indicative of a loss-making company. Shares outstanding were 333.58 million, and the company was listed on the NASDAQ exchange.
Earnings announcements are scheduled for November 8, 2023. However, news suggested negative sentiment around the stock, particularly due to huge potential sell-offs following an S-3 filing for resale of up to 141.64 million shares by existing stockholders.
Recent News and Influence on Stock
The recent discourses around penny stocks in the market provided a mixed sentiment for T2 Biosystems' stock. On one hand, reports stated an increasing interest in riskier assets such as penny stocks, thus boosting TTOO's appeal. On the other hand, TTOO's stock was mentioned as having 'recoiled', and a major sell signal was triggered when T2 Biosystems filed for the resale of up to 141.64 million shares.
Stock Forecast
Given the data and news sentiment, the next trading day, September 6, 2023, might see the stock testing its support level at $0.3425 due to ongoing selling pressure. Potential downward pressure over the week might be observed due to the resale announcement, which could lead the stock to test its stop-loss level at $0.32.
Evaluation and Recommendation
Based upon the technical and fundamental analysis above, TTOO stock seems to be in a risky and uncertain spot. Technically, the stock is in an oversold territory, suggesting that there may be a potential for rebound. However, fundamentally, the company's negative EPS, upcoming mass share resale event, and continuing losses make it a risky investment. Therefore, at this point, the stock is classified as a 'Hold' for the current investors until further developments unfold. For new investors, recent sell-offs and increased volatility suggest it may be prudent to wait for more stable conditions before entering a position in TTOO.
