ADMA Biologics (NASDAQ:ADMA) Stock Extends Fall: Down 20% in a Week
The ADMA Biologics (NASDAQ:ADMA) stock continued on its losing streak on Wednesday as it declined by another 9% and took its decline for the past month to as much as 20%.
The stock managed to record decline for six straight trading sessions and the miseries for the ADMA stock were further compounded after the firm H.C. Wainwright cut the target price in the stock from $10 a share to $7 a share. However, it should be noted that the target price on the day still reflected an upside of around 363.6% from the closing price of the stock on Tuesday.
The analyst at H.C. Wainwright Raghuram Selvaraju stated that the inventory management issues at ADMA are a reason why he has cut the revenue estimates for the company in 2021 and also in 2022. He went on to state that such inventory management related issues are expected to have a negative effect on the company’s top line growth as well. In this regard, it is also important to note that the company had announced that $94.1 million in the form of inventory at the end of the first fiscal quarter could help in sustaining ADMA’s growth from one quarter to the next.
Market Reaction:
On Wednesday, ADMA stock went down 2% at $1.48 with more than 3.08 million shares, compared to its average volume of 7.03 million shares. The stock had moved within a range of $1.4600 – 1.5200 after opening the trade at $1.50. Over the past 52-week, the stock has been trading within a range of $1.4500 – 4.2000.
