Last Updated: 13 Sep 2024
Executive Summary
Oncternal Therapeutics Inc. (ONCT) is a clinical-stage biopharmaceutical company focused on developing cancer therapies for cancers with critical unmet medical needs. The company's stock price has declined significantly in recent months, and it is currently trading at $1.51. This report provides a fundamental and technical analysis of ONCT, as well as short-term and long-term outlooks.
Company Overview
ONCT is headquartered in San Diego, California. The company was founded in 2014 and has a market capitalization of $503.14 million. ONCT's lead product candidate is cirmtuzumab, a monoclonal antibody targeting the Claudin 18.2 protein. Cirmtuzumab is being evaluated in clinical trials for the treatment of several types of cancer, including gastric cancer, pancreatic cancer, and mesothelioma.
Fundamental Analysis
ONCT's financial performance has been mixed in recent quarters. The company reported a net loss of $12.18 per share in the second quarter of 2024, compared to a net loss of $10.45 per share in the second quarter of 2023. Revenue increased by 6.56% year-over-year to $18.46 million.
ONCT's balance sheet is relatively strong, with $132.8 million in cash and equivalents as of June 30, 2024. The company also has no long-term debt.
Technical Analysis
ONCT's stock price has been in a downtrend since early 2023. The stock is currently trading below its 50-day and 200-day moving averages. The relative strength index (RSI) is also below 30, which indicates that the stock is oversold.
Short Term Outlook
The short-term outlook for ONCT is mixed. The company's stock price is likely to remain volatile in the near term. However, the company's strong balance sheet and promising pipeline of product candidates could provide support for the stock price.
Long Term Outlook
The long-term outlook for ONCT is positive. The company's lead product candidate, cirmtuzumab, has the potential to be a blockbuster drug. If cirmtuzumab is approved by the FDA, it could generate significant revenue for ONCT.
Analyst Recommendations
Three analysts have a buy rating on ONCT, while no analysts have a sell rating. The average analyst target price is $27.33, which represents a significant upside from the current price of $1.51.
