What is T2 Biosystems Inc. (TTOO Stock)
T2 Biosystems, Inc. develops direct detection products for diagnostic applications. The Company offers diagnostic instruments for detection of infectious diseases in blood, plasma, serum, saliva, sputum, and urine. T2 Biosystems operates in the United States. Despite the innovative technology, the business has had trouble moving their product. There is no question that this technology can save lives, but changing long-standing medical norms and practices is never easy. Even though a lot of time and money had been wasted, the COVID-19 pandemic turned out to be an opportunity for the corporation to penetrate medical care facilities, which led to a declining share price. Even while patience is a virtue, there comes a point where it runs out. In this piece, I’ll lay out a timeline for the company’s upcoming catalysts, demonstrating that better times are coming soon.
Signals & Forecast for TTOO Stock
TTOO stock has buy signals from both short- and long-term moving averages, indicating a favorable stock outlook. However, the stock also has a general sell signal from the relationship between the two signals, which occurs when the long-term average is higher than the short-term average. The lines at $0.14 and $0.15 will provide some support during corrections downward. Sell signals will be generated by a breakdown below any one of these levels. On August 1st, 2022, a pivot bottom point gave rise to a buy signal, which has since increased by 66.95%. Up till a new top pivot has been discovered, further climb is predicted. A purchase signal is also present from the 3 month Moving Average Convergence Divergence (MACD). Price and volume are both rising. This is seen as a strong technical indicator.
Current State of Things
503,801,381 shares of TTOO Stock exchanged hands as opposed to its average daily volume of 12,052,437 shares during midday trading on Thursday, reaching $0.20. Market capitalization for the stock is $34.12 million, P/E ratio is -0.60, and beta is 0.48. The stock’s two-hundred and fifty-day moving averages are $0.31 and $0.16, respectively. TTOO stocks’ 52-week range includes a low of $0.11 and a high of $1.12.
The CRG loan maturity and interest rate only term will now end on December 31, 2023, rather than December 31, 2022, as T2 Biosystems finally declared.
Analysts Set New Price Targets
Several stock analysts have offered their opinions on TTOO shares. In a post on Tuesday, StockNews.com began covering shares of TTOO Stock. They gave the corporation a “hold” grade. In a research note published on Thursday, July 7th, BTIG Research downgraded shares of TTOO stocks from a “buy” recommendation to a “neutral” one. In a research note published on Thursday, July 7th, Alliance Global Partners reduced shares of TTOO stock from a “buy” recommendation to a “neutral” one.
What To Be Expected
For guidance, the company projects 60 to 70 new placements this year, which will double the number of instruments previously installed; however, during the first two months of 2022, they have already sold or leased 8 instruments. Additionally, due to the anticipated decline in COVID-19 linked sales, the business anticipates FY 2022 revenues to reach $28-$31 million, remaining constant year over year.
Insiders are positive buying more shares than they are selling in TTOO stock
6.73 million shares were purchased and 4.12 million shares were sold over the course of the previous 100 deals. Toft Robin sold 73.22 thousand shares in the most recent transaction, which was 48 days ago. The big difference between the number of shares acquired and sold suggests that insiders are confident in the prospect for a positive upside. Sometimes, greater acquisitions can be justified by stock option expiration dates.
Is TTOO a Good Stock to Buy?
The median target for the two analysts providing 12-month price projections for TTOO stock is 0.32, with high and low estimates of 0.50 and 0.14, respectively. From the most recent price of 0.15, the median projection reflects a rise of +109.15%.
Support, Risk & Stop-loss
On the downside, the stock receives support from accumulated volume at $0.16 and $0.15, which is just below the price of today. A stock testing a support level carries some inherent risk since if it is broken, the stock may fall to the next support level. In this situation, TTOO stock finds support around $0.16, which is close below the current level. The next support from cumulative volume will be at $0.15 and $0.15 if this is broken.
This stock is regarded as “high risk” because it has a big Bollinger Band prediction interval and may change significantly during the trading day (volatility). The stock’s movement between high and low over the previous day was $0.12, or 64.29%. The stock’s daily average volatility during the previous week was 28.24%.
In response to NASDAQ delisting, the company’s CEO, Mr. Sperzel, stated on the most recent earnings call that the company had no plans to conduct a reverse stock split. Even though this is one of the unannounced events, I think Mr. Sperzel would refrain from making such a direct declaration if that were the case.
In that regard, I believe he has a secret weapon up his sleeve, whether it be one of the achievements mentioned above, a surge in quarterly placements, or distribution deals in sizable Asian nations like China or Japan. Mr. Sperzel’s credibility would plummet so significantly in the event of a reverse stock split that he would practically turn into a liability for his own company. But given his professional history to date, I would not classify this scenario as the “basic case”. In that regard, I think this company’s difficult period is nearing its end. The coming days ought to be better.