TTOO Stock Price: T2 Biosystems Inc plummets following earnings report
- NASDAQ:TTOO sinks 10.95% on Tuesday amidst quarterly earnings call.
- The diagnostics firm has been in the news lately for its COVID-19 panel for virus detection.
NASDAQ:TTOO dropped throughout the trading session on Tuesday, as nervous investors sold off before the earnings call after the closing bell. T2 shareholders have enjoyed a profitable run thus far as the stock has risen by over 125% during the last year. Shares have also increased by 35% over the past month – making this last-minute pullback in the stocks price a reversal of the otherwise bullish momentum the company has seen.
T2 Biosystems has been a fixture on penny stock investors’ radar after the diagnostics company announced that it had developed a molecular diagnostics test for detecting the coronavirus in patients via a nasopharyngeal swab. The sample swab is then analyzed with near 100% results available within two hours. As America continues to struggle with containing COVID-19 we should see companies like T2 Biosystems remain relevant for the rest of 2020 and well into 2021 if the virus lingers.
T2 Biosystems Stock
T2 Biosystems reported a 74.29% increase in earnings per share for this quarter as well as a 41.46% year-over-year increase in revenues. Still, it is difficult to gauge how well TTOO is currently being managed as a quick glance at their financials should give investors pause. T2 Biosystems currently sports an EBITDA of $-49.2 million, an operating margin of -572.40%, and a return on assets of -60.87%. These are several key indicators of poor management and a company that just isn’t profitable. TTOO’s board of directors recently vetoed a proposed reverse stock split that would have diluted the penny stock’s price quite a bit – just another sign that the company is financially unhealthy.
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Stocks Reporter
FXStreet
