The stock of Longeveron Inc. (LGVN) saw a huge decrease in its value in the pre-market after gaining significantly in the last 2 weeks. It lost its value by more than 15% from its previously closed value to reach $22.19. In the last trading session, the stock closed at $26.25. The average volume of the stock traded in the trading session was around 22.40 million.
The reasons for the loss in LGVN stock:
Previous two weeks or since the mid of November, it’s been a roller coaster ride for Longeveron Inc. (LGVN) stock. In the mid of November, many investors on different social media sites like Reddit, Discord, and Twitter, etc. cited that the shares of Longeveron are a potential candidate for a short-term profit-skimming stock. They argued the reason for its low float and high short interest percentage. Within a couple of days, the stock skyrocketed and did not stop gaining value and it reached an all-time high of more than $42 a share from $2.92 within 1 week. The total trading volume of the stock reached an all-time high of 100 million in a single trading session.
But the reason for the surge of its stock was not just a Reddit trend, the company also showed some performance in terms of new developments when FDA approved Longeveron’s Lomcel-B, which is a treatment of rare pediatric Disease of a heart condition that threatens the life of newly born children. As the company really relies on approvals from the FDA for regularizing its treatments which greatly affects its profitability. This approval also played a significant role in its stock gain.
Financial highlights of their 3rd quarter results:
- LGVN announced revenue of $0.23 million, which is a year-to-year decrease of 87%. The revenue in the same quarter of last year was $1.87 million.
- The net loss of the company was reported to be $4.86 million; this is a year-to-year increase in the loss of 417%. Last year in the 3rd quarter the loss was reported to be $0.93 million in total.
- The only good thing in the financial report was its increase in cash and cash equivalents which was $9.74 million. This is an increase of almost 600%. The previous year in the same quarter the company had cash in hand of $1.39 million in total.
Conclusion:
LGVN is required to increase its revenue. The upcoming quarters will be crucial for its stock. if the company increased its revenue with the sales of its new product it will increase its profitability and it will be good for the investors to invest in its stock.
