Short interest in Gain Therapeutics, Inc. (NASDAQ: GANX) surged by 64.5% in December, reflecting a notable shift in investor sentiment. As of December 15, 2023, short interest totaled 2,073,310 shares, up from 1,260,732 shares on November 30, 2023. Currently, approximately 5.8% of the company’s shares are sold short, indicating that investors are betting against the stock’s performance.
The days-to-cover ratio, determined by the average daily volume of 1,377,957 shares, stands at 1.5 days. This metric suggests that it would take just over a day and a half to cover all short positions based on current trading volumes.
Market Performance and Financial Metrics
During midday trading on Friday, GANX experienced a decline of $0.07, bringing its share price to $3.15. The trading session saw 576,275 shares exchanged, which is significantly lower than its average volume of 2,177,527 shares.
Financially, the company maintains a quick ratio of 2.52, a current ratio of 2.52, and a debt-to-equity ratio of 0.05. The firm has a market capitalization of $121.16 million and a price-to-earnings ratio of -5.16. Over the past year, the stock has ranged from a low of $1.41 to a high of $4.34.
On November 12, 2023, Gain Therapeutics reported its latest earnings results, revealing a loss of $0.15 per share, meeting analysts’ consensus expectations. Analysts project that the company will post an earnings per share (EPS) of -1 for the current year.
Analyst Ratings and Market Outlook
The stock has garnered attention from several analysts recently. Maxim Group raised its price target for Gain Therapeutics from $5.00 to $7.00 while maintaining a “buy” rating, as noted in a report dated October 7, 2023. Roth Capital also reiterated a “buy” rating and set a target price of $10.00 on December 19, 2023.
Conversely, Weiss Ratings issued a “sell (e+)” rating on December 22, 2023, adding a contrasting perspective to the overall sentiment. Additionally, BTIG Research reaffirmed a “buy” rating with a price target of $9.00 on October 15, 2023, while HC Wainwright reiterated its “buy” rating with a price objective of $8.00 on the same day as Roth Capital’s report.
Overall, six analysts have rated Gain Therapeutics with a buy recommendation, while one analyst has given it a sell rating. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” along with an average target price of $8.67.
Gain Therapeutics, Inc. is a clinical-stage biopharmaceutical company focused on developing precision therapeutics for neurodegenerative and rare diseases. Utilizing its proprietary allosteric modulation platform, AlphaTarget, the company aims to discover and optimize small molecule modulators that target non-active sites on proteins, potentially offering improved disease-modifying treatments. The lead candidate, GT-022, is currently in development for Gaucher disease, a rare lysosomal storage disorder characterized by deficient enzyme activity.
