Recommendation: Speculative Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Potential Upside |
|---|---|---|---|---|---|---|---|
| 13 Dec, 24 | SGMO | Speculative Buy | USD 1.91 | USD 2.13 | USD 2.3 | 2 days | 20.4% |
Data Powered by EOD Historical Data (“EODHD”).
Sangamo Therapeutics, Inc., a clinical-stage genomic medicine company, focuses on translating science into medicines that transform the lives of patients and families afflicted with serious diseases in the United States. The company's clinical-stage product candidates are ST-920, a gene therapy product candidate, which is in Phase 1/2 clinical study for the treatment of Fabry disease; TX200, a chimeric antigen receptor engineered regulatory T cell (CAR-Treg) therapy product candidate that is in Phase 1/2 clinical study for the prevention of immune-mediated rejection in HLA-A2 mismatched kidney transplantation; SB-525, a gene therapy product candidate, which is in Phase 3 clinical trial for the treatment of moderately severe to severe hemophilia A; BIVV003, a zinc finger nuclease gene-edited cell therapy product candidate that is in Phase 1/2 PRECIZN-1 clinical study for the treatment of sickle cell disease. Its preclinical development products focus on CAR-Treg cell therapies for autoimmune disorders and genome engineering for neurological diseases. Sangamo Therapeutics, Inc. has collaborative and strategic partnerships with Biogen MA, Inc.; Kite Pharma, Inc.; Pfizer Inc.; Sanofi S.A.; Novartis Institutes for BioMedical Research, Inc.; Shire International GmbH; Dow AgroSciences LLC; Sigma-Aldrich Corporation; Genentech, Inc.; Open Monoclonal Technology, Inc.; and California Institute for Regenerative Medicine. The company was formerly known as Sangamo BioSciences, Inc. and changed its name to Sangamo Therapeutics, Inc. in January 2017. Sangamo Therapeutics, Inc. was incorporated in 1995 and is headquartered in Richmond, California.
Revenue Growth: Sangamo's revenues for Q3 2024 were $49.4 million, a significant increase from $9.4 million in Q3 2023, largely due to a $49.2 million collaboration revenue from Genentech.
Net Income Improvement: Sangamo achieved a net income of $10.7 million, or $0.04 per share on a fully diluted basis, for Q3 2024, compared to a net loss of $104.2 million, or $0.59 per share, for the same period in 2023.
Revenue Decline from Expired Agreement: Revenue from Sangamo's collaboration with Kite Pharma decreased by $5.5 million in Q3 2024 due to the expiration of the agreement in April 2024.
Cash Decrease: Cash and cash equivalents dropped from $81.0 million as of December 31, 2023, to $39.2 million as of September 30, 2024, limiting the company's runway to fund operations only until Q1 2025.
Key investment risks for Sangamo Therapeutics include reliance on the successful development and commercialization of its gene therapies, the potential for regulatory delays or failures, and the need for continued funding to support its ongoing clinical programs amidst declining cash reserves.
| Entry Price | Support* | Target 1 | Target 2 |
|---|---|---|---|
| 1.91 | 1.6 | 2.13 | 2.3 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
Price Action Analysis (on the daily chart)
The share price of SGMO is trading close to important support levels, indicating the possibility of short-term gains. As the stock progresses upward, it is expected to face a significant resistance level at USD 2.21, which could be approached in the near term, likely within the next 2-4 weeks. If the stock successfully breaches this level, it could lead to further buying momentum and potentially extended gains in the stock.
Technical Indicators Analysis (On the daily chart)
On the daily chart, the 14-period Relative Strength Index (RSI) is positioned below the midpoint, suggesting the potential for an upward movement. Furthermore, the stock price moving above its 50-day Simple Moving Average (SMA), supporting positive bias.
As per the above-mentioned price action and technical indicators analysis, Sangamo Therapeutics, Inc. (NASDAQ: SGMO) is looking technically well-placed on the chart, and a ‘Speculative Buy’ recommendation has been given on the stock. Investment decision should be made depending on an individual’s appetite for upside potential, risks, and any previous holdings. This recommendation is purely based on technical analysis, and fundamental analysis has not been considered in this report. The summary of recommendation is as follows:
Data Powered by EOD Historical Data (“EODHD”).
Sector: Healthcare Industry: Biotechnology
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| SGMO Sangamo Therapeutics Inc |
-0.035 1.49% | 2.31 | - | - | 0.63 | 1.35 | 0.39 | -0.7145 |
| NVO Novo Nordisk A/S |
-2.26 2.13% | 103.70 | 41.58 | 31.15 | 2.13 | 32.99 | 2.11 | 4.70 |
| NONOF Novo Nordisk A/S |
-1.68 1.57% | 105.12 | 41.06 | 31.25 | 2.08 | 33.11 | 2.11 | 4.70 |
| VRTX Vertex Pharmaceuticals Inc |
-55.6951 12.45% | 391.80 | 29.67 | 24.33 | 10.38 | 5.83 | 9.33 | 20.00 |
| REGN Regeneron Pharmaceuticals Inc |
-4.445 0.62% | 710.17 | 29.07 | 20.12 | 7.57 | 3.82 | 6.95 | 19.42 |
Data Powered by EOD Historical Data (“EODHD”).
Related Risks: This report may be looked at from a high-risk perspective and recommendations are provided for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
Disclaimer :
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