Shares of micro cap T2 Biosystems Inc. (TTOO) experienced a significant surge in premarket trading on Tuesday, extending a rally that began the previous day. With Monday’s session ending with a 15.4% increase, the stock is now on a two-day winning streak after a 3.3% gain on Friday. Impressively, T2’s stock has soared by an astonishing 323.9% over the course of the last month.
T2 Biosystems Inc. positions itself as a leading player in rapidly detecting sepsis-causing pathogens and antibiotic-resistance genes. This claim, combined with the recent buzz around the company, has contributed to its skyrocketing stock price. Currently, the market capitalization of T2 stands at $112.72 million.
Despite the impressive performance, Alliance Global Partners maintained a neutral rating for T2 Biosystems Inc. while raising its price target from 7 cents to 18 cents based on the company’s second-quarter results. Ben Haynor, an analyst at Alliance Global Partners, expressed confidence in T2’s technology but cited overriding capital needs as a reason to remain cautious. He noted that although the second-quarter revenue was in line with expectations, the operating loss was greater than anticipated.
As of June 30, 2023, T2 Biosystems Inc. had $16.1 million in cash and cash equivalents. In the second quarter, the company raised a net amount of $18.5 million through at-the-market sales. Additionally, on July 6, they converted $10 million, representing approximately 20% of their term loan, into equity.
FactSet’s survey of three analysts revealed that all of them currently have a hold rating for T2 Biosystems Inc. In terms of performance, the company’s stock has seen a decline of 72.5% in 2023, while the S&P 500 index has witnessed a gain of 16.9%.
In summary, T2 Biosystems Inc. continues to experience significant growth in its stock price. While there are concerns about the company’s capital needs and operating loss, many analysts are confident in the potential of T2’s technology. With its leading position in detecting sepsis-causing pathogens and antibiotic-resistance genes, T2 remains a key player to watch in the market.
