TORC Stock Pops on Morgan Stanley Stake

The security is still off over 80% for the year, however

Digital Content Manager
Dec 31, 2019 at 9:14 AM
facebook twitter linkedin


Pharmaceutical concern resTORbio Inc. (NASDAQ:TORC) is eyeing its biggest one-day percentage gain in over a month this morning, following news that Morgan Stanley took an 8.8% passive stake in the company. The stock is up 10.5% ahead of the bell in response, set to break out above recent consolation near the $1.25 area. 

Prior to a mid-November bear gap, TORC was trading right above the $8 level. However, a surprise halt in its late-stage respiratory illness study sent resTORbio straight into penny stock territory. Since then, the stock has managed to find a floor at its $1.10 region, and is headed into its second day north of it 30-day moving average in over a month. TORC still has a ways to go though, down 83.4% for the year. 

Sentiment among the brokerage bunch is understandably cautious. Five of the six covering the stock say "hold," while one analyst says "sell." The consensus 12-month price target sits at $2 -- a 31% premium to Monday's closing perch at $1.34. 

Lastly, the security has been drifting around oversold territory since its massive sell off -- it's 14-day Relative Strength Index (RSI) closed last night right near the 30 level. While TORC is still right on the cusp of being oversold, a short term bounce could be in the cards for the equity. 

 

Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

 
Schaeffer's Daily Bulletin Offer
 


 


 
Special Offers from Schaeffer's Trading Partners