T2 Biosystems Inc.’s stock fell 8.7% in premarket trades Friday as the developer of in vitro diagnostics products continued its pullback after ending Thursday’s session down 4.5% to snap a two-day winning streak.
The stock fell on trading volume of 137.31 million shares, well above its 65-day average trading volume of 83.68 million shares. T2
TTOO,
has been generating meme-like buzz recently, and its stock has surged 193% in the last month.
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The company, which describes itself as a leader in the rapid detection of sepsis-causing pathogens and antibiotic-resistance genes, has a market cap of $114.25 million. On Tuesday Alliance Global Partners raised its T2 price target to 18 cents from 7 cents following the company’s second-quarter results Monday but maintained its neutral rating for the company. “T2 announced Q2 revenue inline with their preannounced figure, but operating loss was greater than we anticipated,” wrote Alliance Global Partners analyst Ben Haynor. “We continue to be believers in T2’s technology, but overriding nearterm capital needs keep us on the sidelines.”
As of June 30, 2023, T2 had cash and cash equivalents of $16.1 million. The company raised $18.5 million in net proceeds through at-the-market sales in the second quarter and on July 6 converted $10 million, or approximately 20%, of its term loan into equity.
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All of the three analysts surveyed by FactSet have a hold rating for T2.
T2 announced Wednesday that it received written notice from the Nasdaq on Aug. 8 that the company has regained compliance with the Nasdaq’s Market Value of Listed Securities Requirements. On Nov. 22, 2022 T2 was notified by the Nasdaq that it was not in compliance with the NASDAQ’s Capital Market requirement because it failed to maintain a MVLS of at least $35 million for a period of 30 consecutive business days. To regain compliance with the rule, T2 was required to maintain an MVLS of at least $35 million for at least 10 consecutive trading days, which it met on Aug. 7.
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The company’s stock has fallen 77% in 2023, compared with the S&P 500 index’s
SPX
gain of 16.4%.
This story originally appeared on Marketwatch
