Adocia, a French biotech company that specializes in the treatment of diabetes and metabolic diseases, observed a remarkable appreciation in stock value. On Monday, after suffering two sessions of consecutive losses, Adocia experienced a gain of 13.41%, bringing the stock price up to EUR5.92.
Stock Price Performance
The rise in Adocia’s stock price is noteworthy, considering the recent losses. The climb in the company’s share value has placed it well above both its 50-day and 200-day moving averages, which are at EUR4.06 and EUR3.59, respectively. This remarkable rise enabled Adocia to outperform the CAC 40 index by more than 0.49%, after two consecutive sessions of gains.
Potential for Further Growth
The current stock price of Adocia, EUR5.92, still rests significantly lower than its 52-week high of EUR6.62. This gap indicates the presence of further potential for growth in valuations. However, it’s also crucial to note that this price represents an impressive turnaround since Adocia hit its 52-week low of EUR2.74, which is indicative of increased investor confidence.
Positive Revenue Growth
Adocia’s year-on-year quarterly revenue growth, a critical indicator of financial health, exhibits positive growth. A 96.9% annual growth was noted between 2011 and 2017, taking the total revenue up to 17.36 million euros over 12 months. This ascension points to the success of its product pipeline and strategic alliance with Tonghua Dongbao Pharmaceutical.
Cautious Course for Potential Investors
Notably, Adocia’s Earnings Per Share (EPS) has fallen below zero during the past twelve months. This drop means that despite the noticeable increase in revenue growth, the company isn’t making a profit off its outstanding shares. Therefore, potential investors are advised to approach the Adocia stock with caution.
Conclusion
While the robust rise in Adocia’s stock price and the substantial revenue growth may paint an optimistic picture of its market performance, its negative EPS signals the presence of potential risks. Therefore, potential investors should tread cautiously when considering this stock.
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