STOCKS TELEGRAPH

Author: ST Staff

  • Cocrystal Pharma, Inc. (COCP) Stock Trends Higher Following Announcement of Covid-19 Treatment Potential

    Cocrystal Pharma, Inc. (COCP) stock prices stayed stable over the course of the market day on June 17th, 2021. Subsequent pre-market fluctuations have seen the stock climb by 3.85%, bringing it up to USD$1.35.

    CDI-45205

    The company announced on June 14th, 2021 that it had successfully demonstrated that its lead preclinical Covid-19 3CL protease inhibitor CDI-45205 is active against SARS-CoV-2, as well as two of its primary variant strains. The company contracted a third party lab to conduct in vitro studies designed to evaluate the antiviral activity of CDI-45205 and its analogs in VeryE6-eGFP cells that were infected. Infected cells were affected by the Wuhan strain, the United Kingdom strain, and the South African variant.

    Scope of CDI-45205

    CDI-45205 and its analogs exhibited exceptional antiviral activity against each of the variant strains, going so far as to surpass the activity observed with the Wuhan strain. The FDA-approved Covid-19 RNA-dependent RNA polymerase inhibitor, remdesivir, and PF-00835231, a second protease inhibitor, were both reference inhibitors that the study was compared against. Results demonstrated CDI-45205’s excellent activity against the UK variant, with an EC50 of 1.9 uM, while activity against the South African variant exhibited an EC50 of 2.5 uM. As absence of a P-glycoprotein efflux, inhibitor is assumed in both cases.

    Cumulative Growth

    The company intends to continue conducting research into antiviral activity against other emerging variants, such as the up-and-coming Indian strain. The latest disclosed results add to the growing body of preclinical data findings of CDI-45205. Evidence suggests the new data implies the use of the protease inhibitor as an effective treatment of the coronavirus and its variants that have taken the world by storm for over a year now. Furthermore, company scientists continue to use COCP’s proprietary structure-based drug discovery platform technology to facilitate the investigation of broad-spectrum oral protease inhibitors and replication inhibitors for the treatment of Covid-19.

    Agreement with KSURF

    CDI-45205 was announced to have been selected by COCP on December 2020 as its lead Covid-19 development candidate. It was picked from a group of protease inhibitors that came into COCP’s possession through an exclusive license agreement with Kansas State University Research Foundation, which was announce earlier in 2020.

    Future Outlook for COCP

    With the world hurtling towards universal immunizations in the interest of a return to economic and social normalcy, COCP is primed to capitalize on the urgent demand for coronavirus treatments around the world. Current and potential investors are hopeful that management will continue to leverage the resources at their disposal to facilitate significant and sustained increases in shareholder value.

  • Entera Bio, Ltd. (ENTX) Stock Skyrockets After Being Granted European Patent

    Entera Bio, Ltd. (ENTX) Stock Skyrockets After Being Granted European Patent

    Entera Bio, Ltd. (ENTX) stock prices surged by a massive 24.76% as of the market closing on June 17th, 2021, bringing the price per share up to USD$5.19 at the end of the trading day. Subsequent pre-market fluctuations have seen the stock inch up by another 0.19%, bringing it up to USD$5.20.

    Patent Granted

    The company announced on June 17th, 2021 that it had been granted a patent titled “Methods and Compositions for Oral Administration of Protein’s” by the European Patent office. The patent secures a marketspace for the companies PTH formulations that are currently in advanced clinical stages for osteoporosis and hypoparathyroidism.

    Safeguarding Intellectual Property

    The critical patent covers leading PTH treatment products that are based on the company’s platform technology. The newly granted patent, in conjunction, with a myriad of other patents that cover oral formulations and target indications, facilitate the provision of robust protection for ENTX’s intellectual property. Besides the EU patent, the company has been granted strategic patents from countries including, but not limited to, USA, China, Japan, Australia, and New Zealand.

    Scope of Patent

    Especially promising was the recent news of the successful completion of the none-month time window during which the patent could have been challenged. The company is keen to consolidate its position as a market leader in the oral delivery of proteins in the wake of the upcoming six-month BMD result reports from the Phase 2 study. Phase 2 is scheduled for the second quarter of fiscal 2021. The company also has plans to potentially initiate a pivotal Phase 3 study next year, designed to evaluate the company’s oral PTH treatment of osteoporosis.

    About ENTX

    ENTX is an established leader in the development of large molecule therapeutics that are delivered orally, with the company targeting areas with significant unaddressed medical needs. Penetration is highest in markets where the use of injectable therapies is limited for various reasons, including cost, convenience, or compliance issues for patients. The company is spearheading efforts to address standard technical challenges of poor absorption high variability, and the inability to effectively ensure delivery of large molecules to the intended locations in the body.

    Future Outlook for ENTX

    Armed with this ground-breaking development, ENTX is poised to continue its trajectory of success by preparing itself to successfully execute the market proliferation of its patented treatment. Current and potential investors are hopeful that management will continue to leverage the resources at their disposal to facilitate significant and sustained increases in shareholder value.

  • What Raised The SWBI Stock In After Market Trades?

    What Raised The SWBI Stock In After Market Trades?

    The shares of Smith & Wesson Brands Inc. (SWBI) rose 5.27% to trade at $20.97 in after-hours trading. SWBI’s stock closed Thursday’s session at $19.92, down -3.07 percent from Wednesday’s closing price.

    SWBI stock volume remained high at 3.1 million, compared to the average daily volume of 1.38 million within the past 50 days. SWBI shares have risen by 43.13% over the last 12 months, and they have moved down by -4.87% in the past week.

    Over the past three months, the stock has gained 7.62%, while over the past six months, it has shed 15.61%. Further, the company has a current market of $1.05 billion and its outstanding shares stood at 55.14 million. SWBI stock gained traction following the release of its quarterly results.

    How did SWBI perform?

    A leading U.S. manufacturer of firearms and suppressors, Smith & Wesson Brands is known for its wide offering of handguns, long guns, and suppressors. SWBI serves consumers and professionals around the world under the iconic Smith & Wesson, M&P, and Gemtech brands. In addition to forging, machining, and precision plastic injection molding, SWBI also offers manufacturing services.

    Smith & Wesson released its fourth quarter and full year ended April 30, 2021, financial results yesterday.

    Fourth Quarter Fiscal 2021 Financial Highlights:

    • Quarterly Sales of SWBI in the fourth quarter totaled $322.9 million, in comparison with $193.0 million in the same period last year.
    • A gross margin of 45.1% was achieved by SWBI for the quarter, compared to 32.2% in the year-ago quarter.
    • Compared with $20.9 million, or $0.38 per diluted share, in last year’s comparable quarter, SWBI’s GAAP net income for the current quarter was $89.2 million, or $1.70 per diluted share.
    • SWBI’s Net income for the comparable quarter last year was $27.5 million, or $0.50 per diluted share, as compared with $89.6 million this quarter, or $1.71 per diluted share.
    • During the comparable quarter last year, non-GAAP Adjusted EBITDAS of SWBI was $51.6 million, or 26.7% of net sales, while it was $125.6 million or 38.9% of net sales in the reported quarter.

    SWBI’s further plans:

    The SWBI Board approved a new $50 million share repurchase program, in addition to a 60% increase in the quarterly dividend. Dividends will be paid to SWBI stockholders on July 6th for records held on July 1st.

  • Why The VXRT Stock Was Up In Afterhours Trading?

    In after-hours trading, last day, Vaxart Inc. (VXRT) gained 5.79% to $8.40 on the charts. Valxart stock rose nearly 1.93% on Thursday to close at $7.94. The VXRT stock fluctuated between $7.60 and $8.00 during regular trading. VXRT stock is rising not because of relevant news but because retail investors are showing an interest in vaccine stocks.

    VXRT is volatile for what reason?

    Using its proprietary delivery system, Vaxart is developing a range of recombinant vaccines for oral administration.

    • Tablets are used for administering VXRT vaccines, making them easy to store and ship without refrigeration and eliminating the risk of needle-stick injuries.
    • VXRT believes that its proprietary tablet vaccine delivery platform is suitable for the delivery of recombinant vaccines, positioning the company to design recombinant vaccines for new indications and to design oral vaccine versions of marketed vaccines.
    • In its current development program, VXRT develops tablet vaccines for prevention of coronaviruses, noroviruses, influenza, and respiratory syncytial virus (RSV).
    • VXRT has also developed a therapeutic vaccine for human papillomavirus (HPV), its first immuno-oncology indication.
    • In addition to filing domestic and international patent applications, Vaxart has designed and developed adenovirus-based oral vaccinations, which use TLR3 agonists.

    More specifically,

    VAXART plans to begin phase 1/2 testing of its variant-specific candidate vaccines in the third quarter and begin phase 2 testing of its oral COVID-19 vaccine candidate within the next few months.

    A few variant-specific candidates will be moved forward into clinical trials this year with the help of Vaxart’s lead oral COVID-19 vaccine candidate. Additionally, the company is embarking on clinical trials for a norovirus vaccine at an early stage.

    A look at VXRT’s performance:

    During the last five days, Vaxart (VXRT) stock has gained 10.74%; however, the stock has gained 16.76% in the past month. In the last three months, VXRT shares rose 19.94%, and so far in 2021, the stock is up 233.22%.

  • Hydrofarm Holdings Group, Inc. (HYFM) Stock Undergoes Volatility ‎Following Acquisition of Aurora

    Hydrofarm Holdings Group, Inc. (HYFM) Stock Undergoes Volatility ‎Following Acquisition of Aurora

    Hydrofarm Holdings Group, Inc. (HYFM) stock prices were down by a concerning 4.54% as of the market closing on June 17th, 2021, bringing the price per share down to USD$54.43 at the end of the trading day. After-hours trading saw the stock rally by 4.34%, bringing it back up to USD$56.79.

    Acquisition of Aurora

    The company announced on June 17th, 2021 that it had entered into an agreement that would oversee that acquisition of Aurora. The deal will result in the acquisition of Aurora Innovations, Aurora International, and Gotham Properties, the latter of which is a manufacturer and supplier of organic hydroponic products, based out of Eugene, Oregon.

    Expansion of Offerings

    The acquired company’s Roots Organics and Soul soil and grow media and nutrients brands will be added to HYFM’s product portfolio. The catalogue of offerings will also be expanded to include Aurora’s Procision perlite and peat moss professional mixes as high-performance, proprietary branded products.

    Funding the Acquisition

    The closing transaction will be funded for a total consideration of USD$161 million, which will be a combination of both cash and company stock. The newly issued HYFM common stock will amount to approximately USD$26 million. The transaction considered does not include a potential earn out a payment that could amount to USD$21 million, depending on the achievement of certain performance metrics. As per the agreement, Aurora will become a wholly-owned indirect subsidiary of HYFM. The closing of the transaction is expected for the end of July 2021, following the satisfaction of customary closing conditions

    Scope of Merger

    The strategic collaboration serves to make HYFM’s stated goals of acquiring high-growth businesses more accessible. Targeted companies for acquisition are selected based on attractive margin profiles and in-house manufacturing and/or ownership of the branded products being sold. HYFM forecasts Aurora to generate almost UD$60 million in net sales for the full calendar year 2021. In conjunction with the estimated earnout payment, the full transaction consideration represents an acquisition value that come out to almost nine times the numbers reported for Aurora’s Adjusted EBITDA for 2021. This excludes synergies but is inclusive of the net present value of estimated tax benefits resulting from the transaction.

    Future Outlook for HYFM

    Armed with the latest in a string of potentially profitable acquisitions, HYFM is poised to continue its trajectory of success. Current and potential investors are hopeful that management will leverage the resources at their disposal to facilitate significant and sustained increases in shareholder value.

  • What Brought The Capstone (CGRN) Stock Down In Extended Trades?

    In Thursday’s after-hours session, shares of Capstone Green Energy Corporation (CGRN) fell by -26.78% to $5.36. In the last trading session, Capstone stock remained almost stable declining -0.41% to $7.32.

    CGRN stock experienced a trading volume of 0.21 million shares, which is above the average daily volume of 0.13 million shares for the last 50 days. On launching a bought deal offering of its common stock, CGRN stock lost ground.

    What was CGRN’s bought deal?

    Capstone is a global provider of custom microgrid solutions and on-site energy technology systems that help customers achieve their environmental, energy-saving, and resiliency objectives. A key focus of CGRN is on four product lines: Energy Conversion Products, Hydrogen Energy Solutions, Energy as a Service (EaaS), and Energy Storage Products. A rental system from CGRN is a great option for customers with limited capital or short-term needs.

    Capstone announced yesterday that CGRN and the underwriter have decided to expand the previously planned public offering based on high demand.

    • CGRN’s underwriter has agreed to purchase 1,904,763 shares of its common stock on a firm commitment basis.
    • In line with the agreement, shares of CGRN common stock will be offered to underwriters at a price of $5.25 per share, minus underwriting discounts and commissions.
    • CGRN anticipates that the offering will close on June 22, 2021, assuming all customary closing conditions are met.
    • C. Wainwright & Co. is CGRN’s sole book-running manager in relation to that offering.
    • CGRN has also granted the underwriter a 30-day option to purchase up to an additional 285,714 shares of common stock, less underwriting discounts, and commissions, at the public offering price.

    Utilization of proceeds:

    At closing, Capstone (CGRN) is expected to have received approximately $10,000,000 after deducting underwriting discounts and commissions, offering expenses, and the ability to purchase additional shares of stock.

    CGRN plans to use the net proceeds from the offering for working capital, general business operations, as well as growth initiatives, including organic growth and potential acquisitions in the future. The CGRN does not currently have any agreements, understandings, or arrangements for such acquisition.

  • SilverSun Technologies Inc (SSNT) stock performed well on Thursday, But why?

    SilverSun Technologies Inc (SSNT) stock performed well on Thursday, But why?

    SilverSun Technologies Inc. (SSNT) shares surged 14.32% in the after-hours on Thursday, June 17, 2021, and closed at $8.46 per share. Earlier in the morning session, SSNT’s stock gained 1.37% to close Thursday’s morning session at $7.40 per share. SSNT shares have risen 240.95% over the last 12 months, and they have moved down by -5.73% in the past week. Over the past three months, the stock has gained 11.78%, while over the past six months, it has shed 136.34%.

    Let’s have a look at its recent news and developments.

    Avalara Top Partner Award

    On June 4, 2021, SWK Technologies, Inc which is a wholly-owned subsidiary of SilverSun Technologies, received the Avalara Top Partner Award for 2021 in the systems integrator category.

    The Avalara Partner Awards recognize Avalara partners that have gone above and beyond in areas including sales, customer satisfaction, integration, and implementation.

    Recent financial results

    On May 11, 2021, SilverSun Technologies, Inc reported its first-quarter results for the three months ended March 31, 2021.

    Q1 2021 financial highlights

    • SWK Technologies reported a total revenue of $10,879,468 in Q1 2021 compared to $10,079,524 in Q1 2020.
    • For Q1 2021, gross profit was$4,746,537, compared with $3,852,210 in Q1 2020.
    • EBITDA was $691,319 in Q1 2021 compared to $218,654 in Q1 2020.
    • For Q1 2021, Net income was $354,679, or $0.07 per basic and diluted share in Q1 2021, compared to a net loss of $292,115, or $0.06 loss per basic and diluted share in Q1 2020.
    • The Company had $9,356,136 in cash; $1,904,057 in accounts receivable; long term debt of $725,416and total stockholders’ equity of $11,688,772, on March 31, 2021.

    New IT Security and Compliance Division

    OnApril 7, 2021, SilverSun Technologies, Inc established an IT security and compliance division. The new practice will assist SWK’s 5000+ customers in achieving compliance goals to meet or exceed regulatory compliance obligations.

    Intention to acquire Human Capital Management Division of PeopleSense

    On March 30, 2021, SWK Technologies which is a wholly-owned subsidiary of SilverSun Technologies, Inc signed a letter of intent to acquire the human capital management (HCM) division of PeopleSense, Inc. Over the last 18 years, PeopleSense has implemented HCM solutions to customers over half of the United States, Canada, Puerto Rico and the U.S. Virgin Islands.

    FY2020financial highlights

    • For FY 2020, company reported total revenue of 41,220,406, compared with $38,502,482 in 2019.
    • Gross profit was $16,578,981 in FY 2020, compared with $14,678,454 in 2019.
    • EBITDA was $929,317 in FY 2020, compared with$1,187,026 in FY 2019.
    • EPS on a diluted basis, was $0.04 in FY 2020, compared to a loss per share from continuing operations of $0.33 in 2019.
    • The company had total cash of $6,595,416and $1,892,129 in long term liabilities on December 31, 2020. 

    Conclusion

    Well, as of this writing, there is no new development which we can link with its good performance on Thursday. we hope that SSNT will continue to perform well on Friday as well.

  • Athira Pharma, Inc. (ATHA) Stock Plunges Following Changes in Management Despite Promising Pipeline Developments

    Athira Pharma, Inc. (ATHA) Stock Plunges Following Changes in Management Despite Promising Pipeline Developments

    Athira Pharma, Inc. (ATHA) stock prices were down by a marginal 1.67% as of the market closing on June 17th, 2021, bringing the price per share down to USD$18.24 at the end of the trading day. After-hours trading saw the company’s stock plummet by a massive 34.21%, bringing it down to USD12.00.

    LIFT-AD Trial

    The company has been actively recruiting subjects for its LIFT-AD trial, with top-ling data anticipated for the end of 2022. The Phase 2/3 clinical trial is randomized, double-blind, and placebo-controlled, and is designed to evaluate the safety, efficacy, and tolerability of ATH-1017 in patients with mild to moderate Alzehimers disease. With plans to enroll almost 300 patients, the treatment course will span a period of 26 weeks, with participants being randomized across two dose groups and one placebo group. The treatment’s clinical efficacy will be determined by improvements in cognition and global/functional assessments as compared to the results from the placebo group.

    ATH-1019/1020

    ATH-1019/1020 are innovative, small molecule compounds that are designed to be administered as an oral, once-daily treatment. The treatments also activate HGF/MET systems, as well as the distribution to the central nervous system as potential candidates for depression, anxiety, and other neuropsychiatric indications.

    IND Filing of ATH-1019/1020

    IND filing for ATH-1019 and ATH-1020 is expected for the end of 2021, with IND-enabling studies currently being carried out. Decisions on the selection of the lead product candidate will be informed by late-stage clinical development work and potentially early clinical studies.

    ACT-AD Trial

    The company is also actively recruiting for its ACT-AD trial, with reports of top-line data by early 2022. The Phase 2 clinical trial is randomized and placebo-controlled and is designed to evaluate ATH-1017. ATH-1017 is a once-daily investigational drug for the treatment of mild-to-moderate Alzheimer’s disease. Roughly 75 patients are expected to be enrolled in the U.S. and Australia.

    Details of the Trial

    The treatment course will span 26 weeks, with participants being evaluated for improvements in cognition, global and functional assessments as compared to treatment arms that received the placebo. The treatment will also use EEGs to measure qEEG and ERP P300, which is a functional measure of working memory processing speed and executive function. The clinical development strategy for any additional trials of ATH-1017 will be informed by results from the ACT-AD trial.

    Future Outlook for ATHA

    Armed with recent developments in their pipeline of products, ATHA is poised to continue its trajectory of success. The company is keen to push for the commercialization and proliferation of its treatments in development at the moment. Current and potential investors are hopeful that management will continue to leverage the resources at their disposal to facilitate significant and sustained increases in shareholder value.

  • Why The GEO Group Inc. (GEO) stock went up in the after-market on Thursday?

    Why The GEO Group Inc. (GEO) stock went up in the after-market on Thursday?

    The GEO Group Inc. (GEO) shares jumped 14.58% in after-hours on Thursday, June 17, 2021, to close at $8.25 per share. Earlier, GEO’s stock lost 1.37% in Thursday’s morning session and reached $7.20 per share. GEO shares have fallen 40.84% over the last 12 months, and they have moved up 2.13% in the past week. Over the past three months, the stock has lost 9.66%, while over the past six months, it has shed 24.84%.

    Recent new appointments

    On June 1, 2021, GEO’s Chairman, Chief Executive Officer, and Founder, George C. Zoley, will move to the position of Executive Chairman of GEO’s Board of Directors under a new five-year employment agreement with subsequent automatic one-year renewals. The company also appointed Jose Gordo Chief Executive Officer effective July 1, 2021, and he will be reporting to MrZoley.

    Latest financial results

    On May 10, 2021, The GEO Group Inc announced its financial results for the first quarter of 2021 and updated its financial guidance for the full year 2021.

    Q1 2021 financial highlights

    • The GEO Stock reported total revenue of $576.4 million for Q1 2021 compared to $605.0 million for the first quarter of 2020.
    • For first-quarter 2021 net income attributable to GEO was $50.5 million, or $0.41 per diluted share, compared to $25.2 million, or $0.21 per diluted share, for the first quarter of 2020.
    • In Q1 2021, adjusted net income was $0.28 per diluted share compared to $0.24 per diluted share in Q1 2020.
    • Net Operating Income of $152.3 million in Q1 2021 compared to $150.18 million in Q1 2020.
    • For Q1 2021, Normalized Funds From Operations was$53.1 million, or $0.44 per diluted share, compared to $47.2 million, or $0.39 per diluted share, for the first quarter of 2020.
    • Adjusted Funds from Operations was $72.2 million, or $0.60 per diluted share in Q1 2021, compared to $66.6 million, or $0.55 per diluted share, for the first quarter of 2020.
    • As of March 31, 2021, the company had cash and cash equivalents of $289.4 million.

    2021 Financial outlook

    The company has updated its financial outlook for FY 2021 and now expecting

    • Revenue to be between $2.23-$2.25 billion for FY 2021
    • Net Income Attributable to GEO Stock in the range of $141-$150 million
    • Adjusted EBITDA in the range of $395-$406 million for FY 2021.
    • AFFO in the of $2.23-$2.31 per diluted share for FY 2021

    Conclusion

    The GEO stock surging in the after-hours on Thursday has no grounds. As of this writing, there is no recent news or development about GEO stock. So it is hard to predict how GEO will end the current week.

  • Here is why CAI International Inc (CAI) stock skyrocketed in the after-hours on Thursday?

    Here is why CAI International Inc (CAI) stock skyrocketed in the after-hours on Thursday?

    CAI International Inc. (CAI) shares started Thursday, June 17, 2021, trading by going down 4.38% and close the normal trading session at $38.16 per share. But in the after-hours, CAI stock surged 45.13% and reached $55.38 per share price. CAI shares have risen 118.68% over the last 12 months, and they have moved up 0.82% in the past week. Over the past three months, the stock has lost 14.99%, while over the past six months, it has shed 18.29%.

    Mitsubishi HC Capital Inc acquiring CAIInternational

    On June 17, 2021, CAI International, Inc entered into a definitive agreement to be acquired by Mitsubishi HC Capital Inc. MHC will acquire all of CAI’s outstanding and fully diluted common stock in an all-cash transaction for $56.00 per share, which represents a total equity value of approximately $1.1 billion.

    Mitsubishi HC Capital has offered $56 per share in cash according to the company’s statement, marking a 46.8% premium over CAI’s last closing price.

    Recent financial results

    On April 29, 2021, CAI International announced its financial results for the first quarter of 2021.

    Q1 2021 financial highlights

    • CAI international reported a total leasing revenue of $80.8 million in Q1 2021 compared to $69.1 million in Q1 2020.
    • Net income from continuing operations attributable to CAI common stockholders was $32.5 million, or $1.85 per fully diluted share for the first quarter of 2021 compared to $10.5 million or $0.59 per fully diluted share in Q1 2020.
    • Total operating expenses were $32.04 million in Q1 2021 compared to $36.73 million in Q1 2020.
    • For Q1 2021, Return on common equity on adjusted net income from continuing operations was 21.3% compared to 7.1% in Q1 2020.
    • CAI’s Board of Directors declared a cash dividend of $0.30 per common share payable on June 25, 2021, to shareholders of record as of June 10, 2021.

    Q4 and FY 2020 financial results announcement

    On February 16, 2021, CAI International, Inc released its financial results for the fourth quarter and full year of 2020.

    Q4 and FY 2020 financial highlights

    • CAI International reported revenue of $81.57 million for Q4 2020 and $294.0 million for the full year 2020.
    • Total operating expenses were $34.88 million for Q4 2020 and $144.72 million for FY 2020.
    • For Q4 2020, net income was $14.23 million and for FY 2020, net income was $27.73 million.
    • Net income attributable to CAI common stockholders was $12.03 million for Q4 2020 and 18.9 million for FY 2020.

    Conclusion

    The acquisition deal at an exceptional price per share took the CAI stock price to new heights and we can expect it to continue its surge on Friday as well.