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MCRB Stock Price Forecast: Falling Knife or a Dip Opportunity?

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MCRB Stock Price Forecast: Falling Knife or a Dip Opportunity?
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Based in Massachusetts, Seres Therapeutics, Inc. (NASDAQ: MCRB) is a biopharmaceutical company that focuses on developing biological drugs. The company uses a microbiome therapeutics platform. It is dedicated to developing innovative microbiome therapeutics to address severe illnesses. 

Financial Highlights of the Latest Quarter

Seres Therapeutics, Inc. recently reported its financial outcomes for the 3rd Quarter. The company has shown strong progress in its commercial results for its medicine, ]\\\VOWST in the third quarter, driven by a significant increase in new patients. This came in the wake of exceeding the company’s forecasted expectations across multiple dimensions. 

The revenue generated during this quarter was $310k, while the loss from operations was $47,413. Major expenses included $28,253 in research and development. Although considering the nature of the business, it is pretty much acceptable as the pharma companies burn a lot of money on R&D.  

Employee Restructuring Plans of Seres Therapeutics  

The organization is going through a rebuilding cycle, which includes cost-cutting on the labor force by 41%, and is supposed to save a large chunk of funds, as stated at roughly $75-$85 Million in 2024. This may be a turning point for the company as the next major expenses after the R&D costs are general and selling expenditures. This section includes salaries and benefits paid to employees.

Eric Shaff, President and Chief Executive Officer at Seres, expressed his satisfaction with the launch of VOWST, a prescription medicine. He stated that it has exceeded their sales expectations and is on track to deeply penetrate the Recurrent Clostridioides Difficile Infection (RCDI) market. This will transform how this disease is managed. The product has a broad label and a compelling clinical profile, making it an excellent addition to the company’s portfolio.

Technical Analysis and Prediction of the MCRB Stock Price

MCRB Stock Price Forecast: Falling Knife or a Dip Opportunity?
NASDAQ: MCRB stock chart by Tradingview 

MCRB stock price started rising during the bullish pharma markets during the pandemic. However, after the valuation cooled off, the MCRB bulls started leaving. This caused the stock price to start a long downtrend, which is continuing. The stock is near its all-time low levels after the pushback from the bears.

The MCRB stock price witnessed a significant drop in October this year but the bulls found support at $1.22, pushing the price up to $1.27 in November. The immediate resistance stands at $3.03, followed by a second resistance of $4.30. The 50-day and 150-day exponential moving averages are at $2.14 and $3.57, respectively. 

Price Prediction of MCRB 

The relative strength index (RSI) is rising from the oversold level of 30, and the simple moving average line (SMA) has just made a bullish crossover, indicating short-term strength in bulls. Based on the current price action, the prediction for the MCRB stock price is bullish until it reaches its 50-day EMA.

Conclusion

Seres Theraputics, Inc. (NASDAQ: MCRB) posted its quarterly reports recently wherein the company disclosed an employee restructuring plan to budget operations. The MCRB stock price is falling continuously but a short-term bullish move is expected in the future.

Technical Levels

  • Support Levels: $1.27 and $0.55
  • Resistance Levels: $3.03 and $4.30
Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks or related indexes comes with a risk of financial loss.

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