Immunomedics, Inc. (NASDAQ:IMMU)
Immunomedics, Inc. (NASDAQ:IMMU) shares hit a new high on light volume. IMMU shares ended Friday at $7.35 or $0.13 short of their 52-week high of $7.48. Their 30-day, daily average volume is listed at 3.4 million but today only 2.165 million shares traded hands. That lack of volume may give some traders pause to enter the trade until heavier volumes confirm the new high. Working against Immunomedics, Inc. (NASDAQ:IMMU) is a heavy short-sell position as over 28% of the shares flat are represented by short-sellers which, based on the average daily volume figure, gives IMMU a short ratio of 8.43.
On May 10, 2017 Immunomedics, Inc. (NASDAQ:IMMU) released their Q3 2017 financial results. On an EPS basis, IMMU shareholders lost (-$0.55) and revenues increased 44% YoY but the $1.3 million number missed street estimates by $1.9 million. Earnings have been hard to come by for the Morris Plains, NJ-based biotechnology firm. In 2013, IMMU shareholders had an EPS loss of (-$0.15) and that loss has increased every year and in 2016 the loss was reported at (-$0.62). Similarly, sales have been inconsistent. In 2012, annual sales were reported at $32.7 million followed by figures of $5.00 million, $9.00 million, $5.70 million, and just $3.20 million for 2016. At the same time, share dilution has increased each year since 2012 when there were 75.48 million shares outstanding. By 2016 there were 94.77 million shares outstanding.
Still, Immunomedics, Inc. (NASDAQ:IMMU) is up over 82% for the year and up over 105% YTD. Earlier this month Wells Fargo upgraded their rating on IMMU to “Outperform” from “Market Perform”. The only other firm that closely follows Immunomedics, Inc. (NASDAQ:IMMU) has a “Buy” rating for IMMU shares.
Immunomedics, Inc. (NASDAQ:IMMU) is a clinical-stage biopharmaceutical company that develops treatments for addressing cancer, auto-immune disorders, and other serious diseases. Immunomedics owns proprietary technology with which they create humanized antibodies that can be used either alone in unlabeled or “naked” form, or conjugated with radioactive isotopes, chemotherapeutics, cytokines or toxins. Immunomedics has a pipeline of eight clinical-stage product candidates. One drug candidate is in Phase 3 testing, one has ended Phase 2 testing, three are currently in Phase 2 trials, and two are in Phase 1 trials. Of note is that Immunomedics is in a collaborative effort with a firm that was subsequently purchased by Bayer. The agreement is for the development of epratuzumab conjugated with Algeta’s proprietary thorium-227 alpha-pharmaceutical payload.
I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. All information, or data, is provided with no guarantees of accuracy.
About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading.