Our list of recent IPO* movers of the week is heavy on tech and pharmaceutical companies, with one company jumping from the losers to the winners.
Gemphire Therapeutics Inc. (Nasdaq: GEMP) led the winners with a 25% gain. The Michigan-based pharmaceutical company is up 70% since the end of May and 113% in 2017 so far. In late June, GEMP announced encouraging phase 2b data on one of its drug candidates in late June. But there's been little news other than that. Analyst ratings have remained consistent in recent weeks. According to Sports Perspectives, the consensus rating on GEMP is a "Buy," with an average price target of $21.80. Shares closed the week at $16.31.
China Rapid Finance Ltd. (NYSE: XRF) soared 20.6% for the week. The online consumer-lending marketplace announced on Monday that it had reached the 20 million-loan milestone on its platform. That number was just 10.7 million at the end of 2016, indicating significant growth in the last six months. The Shanghai-based company went public in the United States in late April.
GDS Holdings Ltd. (Nasdaq: GDS) jumped from the losers to the winners list, erasing its 11.5% loss in the previous week with a 17% gain. The Chinese tech company announced the development of a new data center in Shanghai last week. GDS received a fair amount of attention when it went public last November. But it suffers from the fact that, unlike its American competitors in digital real estate, it is not technically a real estate investment trust (REIT) and doesn't distribute a dividend.
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Kadmon Holdings Inc. (NYSE: KDMN) returned to the movers list after a week off. The biopharmaceutical company enjoyed two consecutive weeks on the winners list, but led the losers last week with a 17.4% drop. Shares closed at $3.14, barely a quarter of its $12 IPO price a year ago. Zacks Investment Research downgraded the stock last week from a "Buy" to a "Hold."
Tocagen Inc. (Nasdaq: TOCA) dropped 13.3% for the week. The San Diego-based company, which is testing gene therapy on brain cancer, performed well following its IPO in April. But it has fallen 42% since early May. The stock closed the week just above its IPO price of $10.
*Stocks are listed on a U.S. exchange with an initial public offering in the last year. Data and analytics provided by FactSet.
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About the Author
Stephen Mack has been writing about economics and finance since 2011. He contributed material for the best-selling books Aftershock and The Aftershock Investor. He lives in Baltimore, Maryland.