ORPH Stock: Towards Growth in the Health Sector
ORPH Stock price today is 7.33 USD with a volume of 95,796,244. At the same time, its chart fluctuates between 7.01 USD – 9.35 USD. ORPH Stock price was a maximum of 77.77 USD and a minimum of 4.75 USD within 52 weeks. Its average volume is 7,069,404, and it is ranked 256.2M in the MarketCap listings. The target point of ORPH Stock price at the end of 1 year is 10.50.
ORPH stock rose 61% yesterday. ORPH stock rallied as high as $77.77 last week, but unfortunately, this rise did not last long and then fell. Although it rose over 60% during the year, it fell almost 80% from its highs. The huge fluctuation in the stock was caused by speculative trading, not any news specific to the company.
The Volatility of ORPH Stock
Upon the large volatility in the stock, the company made a statement on this issue. The company stated that since June 10, 2021, there are no significant changes in clinical development programs, financial condition or operating results to explain the fluctuation or transaction volume.
Per Hansen, investment economist at retail broker Nordnet, also commented on the increase. In his statement, he stated that it was not only GameStop and AMC that were the subject of strange, sudden and inexplicable price developments. In addition, he added that there is no specific reason behind every development in the stock market and that ORPH stock is an example of these.
Analysis of ORPH Stock
When we look at the technical indicators, we see that the 14-day RSI (relative strength index) value of ORPH stock is 63′, which is approaching the overbought levels. Stocks with RSIs above 70 hold overbought signals, while stocks with RSIs below 30 are a sign of oversold positions. ORPH Stock is trading above its 50-day simple moving average and its bullish 200-day simple moving average.
Earlier this week, ORPH stock announced that it has cut its stake in Sunstone Life Science Ventures, one of its largest shareholders. Sunstone Life Science Ventures currently owns less than 5% of the company. However, we do not know exactly how many shares the group has in the company. In general, it is not a good sign for a top shareholder to reduce his or her stake in the company. However, ORPH stock, on the contrary, went up after the group cut its shares. Some investors saw this as a strategy to reduce the shares of the group before a possible ORPH purchase.
Orphazyme is a company focused on heat shock protein responsible for the treatment of rare diseases and is a lead candidate for arimoclomol (an investigational drug candidate that increases the production of heat shock proteins (HSPs). The company awaits an FDA decision today on the product, and an expected PDUFA action date is June 17, 2021, according to ORPH.
ORPH stock is rising as the company expects a positive response from the FDA on arimoclomol. The product competes with Zavesca from J&J, and it is natural for companies in the clinical phase to expect product approval to increase. In addition, such shares are very volatile at the time of the announcement of the trial results.
Many Wall Street analysts do not focus on ORPH stock and only two analysts consider stocks. While Bank of America rates the stock with an underperforming rating and a $5 target price, Guggenheim considers it a buyout. On the other hand, this stock has a target price of $27, according to MarketBeat.
The company is confident in the future of its products under development. The company is 90% confident that the FDA’s approval will be positive and has taken this into account when proving its 2021 guidance. The product could generate between $10-20 million in revenue in 2021 and become an approved product in Europe by the end of this year.