Wall Street sell-side analysts have issued buying recommendation ratings for shares of PDS Biotechnology Corp (PDSB, Financial) and Hoth Therapeutics Inc (HOTH, Financial), even though these stocks have fallen more than 59% over the past 52 weeks.
There is a significant investment risk holding these so-called "falling knives," as the sharp decline in the share prices could signal the existence of permanent problems. Investors can, however, reduce the risk if they choose falling knives that have a lower debt burden.
PDS Biotechnology Corp
Shares of PDS Biotechnology Corp were trading at a price of $1.27 per unit at close on Friday, June 12 for a market capitalization of $19.43 million. The stock price has fallen by 79.3% over the past 52 weeks through June 12.
The share price is currently trading at a 74.8% discount to the middle point of the 52-week range of $0.62 to $9.45. The 14-day relative strength index of 53 indicates that this stock has not reached oversold levels yet, despite the share price tumble.
PDS Biotechnology Corp is a Princeton, New Jersey-based clinical-stage biopharmaceutical developer of immunotherapies for several forms of cancer. The company does not have debt.
Wall Street sell-side analysts recommend a moderate buy rating and predict that the share price of PDS Biotechnology Corp will rebound up to a target price of $5.45 per share, gaining about 329% from Friday’s closing price.
Hoth Therapeutics Inc
Shares of Hoth Therapeutics Inc were trading at a price of $2.63 per unit at close on Friday for a market capitalization of $35.29 million. The stock price has decreased by 61.3% over the past 52 weeks through June 12.
Currently, the share price represents a 49.4% discount to the middle point of the 52-week range of $2.52 to $7.87. The 14-day relative strength index of 34 indicates that the stock is close to oversold levels as a result of the deep downturn in the share price.
Hoth Therapeutics Inc is a New York-based biopharma developer of treatments for patients suffering from several dermatological disorders. Hoth Therapeutics Inc is a free debt company.
Wall Street sell-side analysts recommend a buy rating for Hoth Therapeutics Inc, predicting the share price will bounce back strongly up to the target price of $10, which reflects a 280% upside from Friday’s closing price.
Disclosure: I have no positions in any securities mentioned.
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