Zosano Pharma (ZSAN) Stock Up 75%: Should You Buy & Hold It?

Summary

  • Stocks of pharmaceutical company Zosano Pharma Corp (NASDAQ:ZSAN, ZSAN:US) shot up by over 75 per cent on Monday, February 8.
  • While there were no clear business or corporate news from the company, some media outlets reported on Monday that Zosano Pharma stocks have received positive ratings from Wall Street analysts.
  • The shares also noted a sharp jump last week (February 1) after Zosano announced submitting the early onset of action data of its investigational migraine therapy at a winter conference.

Stocks of pharmaceutical company Zosano Pharma Corp (NASDAQ:ZSAN, ZSAN:US) shot up by over 75 per cent on Monday, February 8. The latest surge inflates the pharma stock by over 266 per cent year-to-date and by almost 110 per cent in February.

Let’s take a closer look at Zosano’s profile to under the latest jump in its stock price and its recent performance in general.

 

Zosano Pharma Corp (NASDAQ:ZSAN, ZSAN:US)

Current Stock Price: US$ 1.93


While there were no clear business or corporate news from the company, some media outlets reported on Monday that Zosano Pharma stocks have received positive ratings from Wall Street analysts.

The shares also noted a sharp jump last week (February 1) after Zosano announced submitting the early onset of action data of its investigational migraine therapy at a winter conference. The pharma company said that its alternative therapy using microneedle system, named Qtrypta™, has “tremendous potential” to acutely treat migraine.

Zosano stocks, which gained about 135 per cent in the last one year, saw over 12.7 million shares exchange hands over the last 10 days. Its one-month share trading volume stands at 12.5 million.

©Kalkine Group 2020

The clinical-stage biopharmaceutical firm currently holds a market cap of nearly US$ 197 million, with a price-to-book (P/B) ratio of 3.57 and a debt-to-equity (D/E) ratio of 0.32, as per the data available on the TMX Group portal.

On the financial front, Zosano saw a year-over-year (YoY) reduction in its net loss for the third quarter of 2020, down to US$ 8.7 million from that of US$ 9.9 million in Q3 2019. Its cash and cash equivalents amounted to a total of US$ 43.6 million at the end of 30 September 2020, significantly up from that of US$ 6.3 million at December-end in 2019.

Some Wall Street analysts reportedly expect Zosano stock to surge significantly over the next 12 months, which makes it an attractive buy. Nonetheless, investors should do their own enhanced research before making any investment decisions.

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