Progenity Inc. (NASDAQ:PROG) Stock Makes a Big Move: Rockets 54% in 6-Month
Progenity Inc. (NASDAQ: PROG) shares have been disappointing this past year, with shares dropping from $13 since its IPO in 2020 to below $1 per share.
Market Stats
On Monday, PROG stock soared 16.84% at $3.47 with more than 46.99 million shares, compared to its average volume of 64.39 million shares. The stock has moved within a range of $3.0500 – 3.5300 after opening trading at $3.05.
Key Buzz
However, the stock recently benefitted from a short squeeze that boosted the shares to the $4 mark. Unfortunately, the momentum seems to have faded, and the stock has started to decline, and this is worsened by the fact that the company has little to justify its business case.
The company used to have a big testing business which it ended, and currently, it doesn’t have any short-term revenue-earning assets as it transitions to a biotech company. In 2019 the company generated revenue of $144 million through its testing, but last year demand for the tests dropped, and the company’s operating losses widened last year. In addition, the company had to pay $49 million last year to settle claims of kickbacks and fraudulent billing. As a result, Progenity had to wound down the testing business and close its testing lab early this year, and stop selling genetic tests. So, PROG is worth watching in the coming days.
Traders Corner
PROG stock is trading above the 20-Day and 50-Day Moving averages of $3.14 and $2.15 respectively. Moreover, the stock is trading above the 200-Day moving average of $3.01. The stock is up 62% in the past month.
