TrovaGene Stock Fell 48% on June 8 after Pricing Announcement




TrovaGene (TROV) is a clinical-stage oncology therapeutics company. TrovaGene announced the pricing of the underwritten public offering of 18 million shares of its common stock on June 7. Following the announcement, the stock price decreased ~48% to the closing price of $0.92 on June 8.

The above chart compares analysts’ recommendations in the past 12 months. On June 11, TrovaGene’s stock price increased in the pre-market trading session.

About the offering

As we discussed, TrovaGene announced the pricing of its public offering of 18 million shares of common stock and common stock warrants to purchase up to 18 million shares of common stock. TrovaGene decided the price of the common stock with a common stock warrant to purchase one share of common stock at the combined price of $1.00 per share. The warrants will be exercisable following the issuance at $1.10. The warrants will expire five years after the date of issue.

TrovaGene has granted underwriters an option to purchase 2.7 million additional shares or additional common stock warrants up to 2.7 million shares of common stock within 45 days.

The offering should close on June 12. The company expects the net proceeds to be ~$16.2 million, excluding the proceeds from exercising warrants.

Analysts’ recommendations

TrovaGene’s stock price has decreased ~90.7% in the past 12 months. However, analysts expect the stock price to increase substantially at the 12-month target price of $51.5 per share—compared to the last price of $0.92 per share as of June 8.

As of June 11, there are two analysts tracking TrovaGene stock. One analyst recommends a “buy,” while one analyst recommends a “hold.” The consensus rating for TrovaGene stands at 2.50, which represents a moderate “buy” for value investors.

Notably, the VanEck Vectors Biotech ETF (BBH) holds 12.1% in Amgen (AMGN), 10.0% in Gilead Sciences (GILD), and 6.5% in Celgene (CELG).

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