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Why Invitae Stock Rose 23% in Week Ended August 24

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Stock performance

On August 24, Invitae (NVTA) stock closed at $12.56, which represents a ~4.75% growth from its prior day’s close of $11.99. It hit its 52-week high of $12.75 on August 24. On August 23, it rose ~5.83% to $11.99 from its prior day’s close of $11.33.

For the week ended August 24, Invitae stock closed at $12.56, which represents a ~23% rise from its prior week’s close of $10.21 on August 17. It’s been seeing consistent growth since its second quarter financial results were released on August 7.

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Reason for the rise in Invitae stock

Invitae delivered solid growth in the second quarter of 2018 when it reported revenues of $37.3 million compared to $14.3 million in Q2 2017. That’s a 160% year-over-year growth and a 35% sequential growth. In the second quarter, it generated revenues of $36.35 million in genetic test revenues and $956,000 from other revenues.

In the second quarter, it reported a gross profit of $16.9 million compared to $3.8 million in Q2 2017 and $9.6 million in Q1 2018. It reported a net loss of $31.7 million in Q2 2018 compared to $28.6 million in Q2 2017.

In the second quarter, Invitae added 73,000 samples, which reflected a ~139% year-over-year growth and a 14% sequential growth.

Analyst recommendations for NVTA and its peers

Of the six analysts tracking Invitae in August, two of them have recommended a “strong buy,” three have recommended a “buy,” and one has recommended a “hold.”

Of the eight analysts tracking TherapeuticsMD (TXMD) in August, all of them have recommended a “buy.” Among the four analysts tracking Progenics Pharmaceuticals (PGNX), all of them have recommended a “buy.”

On August 26, Progenics Pharmaceuticals and TherapeuticsMD had consensus 12-month target prices of $15 and $15.86, respectively, which represents ~94.81% and ~161.72% returns on investment, respectively, over the next 12 months.

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