Synairgen Share Price Forecast July 2021 – Time to Buy SNG?
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Shares of Synairgen PLC (LSE: SNG) are up today after the company recently reported positive findings from early studies carried out on its SNG001 drug for direct delivery to patient’s lungs. SNG shares have been trading high due to the company’s involvement in drug production related to the Covid-19 pandemic.
Synairgen PLC – Technical Analysis
The total market cap for Synairgen PLC is at £306.669 million with total assets worth £8.54 million according to its financial statement. Underlying earnings for 2020 was at £69,000 compared to 238,000. Revenue also decreased to £7.8 million in 2020 from the previous year’s figure of £11.5 million. At the time of writing, SNG shares are valued at £155.4 with an uptrend of 1.30%.
When it comes to technical information, Oscillators for Synairgen PLC such as Bull Bear Power(−12.3), Ultimate Oscillator (7, 14, 28)(50.0), Stochastic RSI Fast (3, 3, 14, 14)(6.4) and Average Directional Index (14)(23.3) are pointing towards neutral. Moving averages such as Simple Moving Average (100)(152.4), Exponential Moving Average (200)(143.3), Simple Moving Average (200)(150.1) and Hull Moving Average (9)(152.0) are pointing towards buying.
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Recent Developments
As soon as Synairgen PLC released lab test results of its inhaled interferon beta, its shares started to soar. The new drug has shown potent antiviral activity in the fight against the 2 new variants of the SARS- COV-2. Synairgen’s share prices declined rapidly from £147.70 to £98 back in May. However, the company recovered fast and went back to its past positive results. SNG shares opened at £155 and closed at £153.40 on July 9th. The trading value of the day for the shares was ranging between £152.10 and £156.94, with the average volume exceeding the total volume by almost £2 million. Earning per share for SNG is -9.50.
Should You Buy SNG Shares?
Investors have to consider two scenarios. If the drug doesn’t make it through the final testing phase, it could result in the company losing its flagship product. This could be disastrous for the share prices. On the other hand, if the drug makes it through stage 3 trials, the company has a bright future. The SNG001 has shown great results so far and the market for such new drugs could be colossal.
Synairgen’s recent trading activity is a reflection of the market’s uncertain views as some investors may not believe in the company’s treatment. However, the positive news regarding the new treatment is a major boose for the company. Investors could thus add a small speculative position to their portfolio if they want to invest in SNG.
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