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Friday, May 20, 2022

Abeona Therapeutics Inc. (ABEO) Penny Stock Worth Buying or not?

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Abeona Therapeutics Inc. (ABEO) is an early-stage biotherapeutics business engaged in the development of gene and cell therapeutics for serious aliments including recessive dystrophic epidermolysis bullosa and Sanfilippo syndrome types A and B. The biotechnology market has vast opportunities and is one of the fastest-growing markets with a growth projection of 9.4% from 2021 to 2027. ABEO is positioned at 126th place out of a total of 510 companies.

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ABEO: Recent Developments

On March 31, ABEO provided its strategy and business update. Some of the focal points include topline data readout for its EB-101 Phase 3 VIITAL study, intensification of its pursuit of a strategic collaboration to take over ABO-102development activities, discontinuation of ABO-101development for MPS IIIB, and continued development of AAV-based gene therapeutics.

ABEO: Earnings

ABEO recorded a decline of 40% in its revenue for the fiscal year 2021, along with a 5% gain in its per-share earnings. The actual revenue and earnings are $3.0 million and -$0.86. The company observed a steep decline in its revenue after 2020 because of the constraints associated with the pandemic, while its EPS remained almost stable over the past few years. For FY22, the revenue and EPS estimates are $666 thousand and -$0.33 respectively.

Source: Chartmill

Comparison with Peers

When the stock price of the company is compared with its peers for the last year, it becomes clear that RNAZ, CABA, and CLRB performed well as their stock gained momentum YoY, while ACXP, ABEO, CLRB, CALA, and BBI showed poor performance as their shares price reduced.

Source: Benzinga

Insider Transaction and Analyst Ratings

 The total number of shares outstanding for the company is 147.3 million, of which 27.5% of shares are being held by certain institutions, while 10.5% of shares are held by ABEO’s employees. SVB Leerink’s analyst Mani Foroohar downgraded the market sentiment from outperforming to market performance and lowered the target price from $5.0 to $1.0.

Risk Factors

Some of the most important risk factors in buying ABEO’s stock are its current and futuristic (next three years) unprofitability, less than one-year cash runway, volatility in share price, and dilution of shareholders in the past. The company’s revenue is estimated to grow by 55.2% per year.

Bottom Line

ABEO stock has several ambiguities associated with it, while certain technical indicators point towards positivity, so the investors should decide wisely before investing.

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