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.