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Why ADMA Biologics Stock Soared Yesterday

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Share price movements

Yesterday, ADMA Biologics (ADMA) closed at $5.06, which is about 24.32% higher than its previous closing price, 143.27% higher than its 52-week low of $2.08, and 27.30% lower than its 52-week high of $6.96. At the end of April 2, the company had a market capitalization of $203.61 million. ADMA Biologics is a microcap stock that can pose a higher risk to retail investors than large-cap stocks or the broader market.

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On April 1, ADMA Biologics issued a press release announcing FDA approval of its investigational intravenous immune globulin therapy, ASCENIV, for adolescents and adults suffering from PIDD (primary humoral immunodeficiency disease). According to the press release, the company expects to commercially launch ASCENIV in the second half of 2019.

On January 7, ADMA Biologics had issued a press release announcing the submission of responses to the FDA relating to a complete response letter for intravenous immune globulin, BIVIGAM, for primary humoral immunodeficiency. The company reported a 6.44% rise in share prices and closed at $3.04 on January 7.

Based on its closing price on April 2, ADMA Biologics reported returns of 51.04% for the last week, 18.78% for the last month, and 111.72% for the last quarter. The company had reported returns of -18.52% in the last half-year, 15.26% in the last year, and 111.72% year-to-date.

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Analysts’ recommendations and target price

Wall Street analysts expect an upside potential of 120.16% for ADMA Biologics, based on the company’s closing price on April 2. Analysts raised their target prices for the stock from $10.42 in January and February to $10.50 in March and then $11.14 in April. The current consensus analyst recommendation for the stock is a “buy.”

Of the seven analysts covering ADMA Biologics, one recommends a “strong buy” and six recommend a “buy.” The highest and lowest target price estimates for the company are $16 and $5, respectively.

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