SAVA Stock Price: Cassava Sciences Inc. drops after record-setting day from analyst upgrade

  • NASDAQ:SAVA fell nearly 10% on Tuesday following a near 90% rise to start the week.
  • Analyst upgrades followed after Cassava’s positive announcement regarding its Alzheimer’s clinical trials.

NASDAQ:SAVA pulled back on Tuesday after nearly doubling in price on Monday after Wall Street analysts were bullish on the biotech’s results from a Phase 2B clinical trial of their Alzheimer’s treatment Sumifilam. Shares fell 9.42% to close Tuesday’s trading session at $7.02 which is still well above its 50-day and 200-day moving averages. This comes after the stock skyrocketed by over 145% on Monday following the Cassava’s announcement. Trading volume has been high the last couple of days with over 14 million shares being traded on Tuesday compared to the average trading volume of 4 million. 

Sumifilam showed a response rate of patients who showed improvements of 98% which is wonderful news for the company after news in May came out that the trial failed to achieve its primary endpoints. The reversal in the treatment’s performance was music to investors' ears as the micro-cap biotech company based out of Austin, Texas nearly doubled its market cap in the span of 24 hours. Maxim analyst Jason McCarthy upgraded his stance to buy and hold and eagerly announced a new long-term price target of $14. McCarthy used 2025 as the key year in which the finalized drug approval and potential launch would happen so investors do have a bit of a longer-term horizon if McCarthy is accurate in his claims.

SAVA stock forecast

SAVA stock price chart

In the short-term, SAVA may have already accomplished a bulk of its growth over the last couple of days. Cassava hopes to have Phase 3 trials for Sumifilam to begin by late 2021 and is set to last a few years so McCarthy’s time estimates may be spot on. Investors should be in it for the long haul now as a successful Phase 3 could run the stock price up again and establish Cassava as a leader in the field of Alzheimer’s treatments. 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD trades at fresh September lows

Risk-aversion is the main theme this Monday, amid resurgent coronavirus cases in the Old Continent and the announcement of  new lockdowns. ECB’s Lagarde said the economic recovery in the EU is “very uncertain, uneven and incomplete.”


GBP/USD extends slump sub-1.2800

The Pound plunged on a dismal market mood, as PM Johnson acknowledged the kingdom is undergoing a second coronavirus wave. GBP/USD trades at one-week lows around 1.2800.


XAU/USD bullish bias starting to fade

Gold prices are testing the bull's commitments at the support structure around $1,906 in what could be a final test before the next leg higher of the bullish trend.

Gold News

Bitcoin needs to defend critical support level at $10,600

Bitcoin was trading inside an ascending triangle pattern between September 3 and September 15, which is created when the price establishes higher lows and a horizontal trendline around the swing highs. 

Read more

WTI plummets to $39, down more than 4%

Crude oil prices closed the previous week sharply higher but erased a large portion of those gains on Monday. As of writing, the barrel of West Texas Intermediate was down 4.2%, the biggest daily percentage decline in nearly two weeks, at $39.15.

Oil News