TG Therapeutics Stock Plummets After FDA Update

The stock is trading at new annual lows

Deputy Editor
Nov 30, 2021 at 10:23 AM
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TG Therapeutics Inc (NASDAQ:TGTX) stock is plummeting today, down 45.4% to trade at $12.75 at last check. The company is struggling to secure a date with the U.S. Food and Drug Administration's (FDA) Oncologic Drugs Advisory Committee (ODAC) to review its application for its combination cancer drug "U2" (ublituximab and umbralisib). TG Therapeutics added that they believe the meeting will happen in March or April of 2022, though the target date was much earlier.

Today's bear gap has TGTX trading at fresh annual lows, down 73.8% year-to-date. Plus, the 320-day moving average has kept a tight lid on breakouts since early August. It's also worth noting, however, that the stock's Relative Strength Index (RSI) of 13 sits firmly in "oversold" territory, which typically predates a short-term bounce. 

There is ample room for downgrades amongst the brokerage bunch, unless they choose to wait it out. All six analysts in coverage carry a "strong buy" rating on TG Therapeutics stock. Plus, the 12-month consensus price target of $58.38 is an over 300% premium to current levels. 

Meanwhile, short interest makes up 10.2% of TGTX's available float. In other words, it would take over 11 days to buy back these bearish bets, at the stock's average pace of trading -- leaving plenty of potential for a short squeeze. Due to the volatile price action, though, the equity has landed on the Short Sale Restricted (SSR) list today. 

The stock's typically quiet options pits are bustling with activity this morning, with options volume running at five times what's typically seen. The December 15 call is the most popular, with new positions being opened at the contract. 

 

 

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