Wedbush slashes price target on Geron Corporation [GERN] – find out why.

Geron Corporation [NASDAQ: GERN] gained 0.81% or 0.02 points to close at $2.50 with a heavy trading volume of 41117268 shares. The company report on January 5, 2023 that Geron Corporation Announces Pricing of $198 Million Upsized Public Offering of Common Stock and Pre-Funded Warrants.

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Geron Corporation (Nasdaq: GERN), a late-stage clinical biopharmaceutical company, today announced the pricing of an upsized underwritten public offering consisting of 55,876,297 shares of its common stock at a public offering price of $2.45 per share and pre-funded warrants to purchase 25,000,000 shares of its common stock. The pre-funded warrants are being sold at a public offering price of $2.449 per pre-funded warrant. All of the securities in the offering are to be sold by Geron. In addition, Geron has granted the underwriters a 30-day option to purchase up to an additional 12,131,444 shares of its common stock, less underwriting discounts and commissions. The offering is expected to close on or about January 10, 2023, subject to the satisfaction of customary closing conditions.

The gross proceeds to Geron from this underwritten public offering, before deducting the underwriting discount and other estimated offering expenses, are expected to be approximately $198.1 million. Geron currently intends to use the net proceeds from this public offering, together with its existing cash, cash equivalents, restricted cash and current and noncurrent marketable securities, to fund preparatory activities for the potential U.S. commercial launch of imetelstat in lower risk MDS, and, if approved, to fund the potential U.S. commercial launch of imetelstat. Geron intends to use the remaining proceeds, if any, for working capital and general corporate purposes.

It opened the trading session at $2.605, the shares rose to $2.70 and dropped to $2.45, the range by which the price of stock traded the whole day. The daily chart for GERN points out that the company has recorded 29.53% gains over the past six months. However, it is still -152.53% lower than its most recent low trading price.

If we look at the average trading volume of 7.04M shares, GERN reached to a volume of 41117268 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about Geron Corporation [GERN]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for GERN shares is $4.67 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on GERN stock is a recommendation set at 1.50. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Wedbush have made an estimate for Geron Corporation shares, keeping their opinion on the stock as Outperform, with their previous recommendation back on October 28, 2022. While these analysts kept the previous recommendation, B. Riley Securities raised their target price to Buy. The new note on the price target was released on July 28, 2022, representing the official price target for Geron Corporation stock. Previously, the target price had yet another raise to $4, while Robert W. Baird analysts kept a Outperform rating on GERN stock.

The Average True Range (ATR) for Geron Corporation is set at 0.27, with the Price to Sales ratio for GERN stock in the period of the last 12 months amounting to 630.33. The Price to Book ratio for the last quarter was 9.26, with the Price to Cash per share for the same quarter was set at 0.52.

Trading performance analysis for GERN stock

Geron Corporation [GERN] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 19.05. With this latest performance, GERN shares gained by 9.17% in over the last four-week period, additionally plugging by 29.53% over the last 6 months – not to mention a rise of 113.68% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for GERN stock in for the last two-week period is set at 54.68, with the RSI for the last a single of trading hit 54.65, and the three-weeks RSI is set at 54.21 for Geron Corporation [GERN]. The present Moving Average for the last 50 days of trading for this stock 2.26, while it was recorded at 2.60 for the last single week of trading, and 1.96 for the last 200 days.

Geron Corporation [GERN]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and Geron Corporation [GERN] shares currently have an operating margin of -8183.70 and a Gross Margin at +43.79. Geron Corporation’s Net Margin is presently recorded at -8335.39.

Return on Equity for this stock declined to -68.84, with Return on Assets sitting at -46.75.

Geron Corporation’s liquidity data is similarly interesting compelling, with a Quick Ratio of 2.70 and a Current Ratio set at 2.70.

Geron Corporation [GERN]: An earnings per share (EPS) analysis

The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for GERN. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Geron Corporation go to 5.00%.

An analysis of insider ownership at Geron Corporation [GERN]

There are presently around $474 million, or 50.50% of GERN stock, in the hands of institutional investors. The top three institutional holders of GERN stocks are: RA CAPITAL MANAGEMENT, L.P. with ownership of 30,126,299, which is approximately 0% of the company’s market cap and around 0.10% of the total institutional ownership; BLACKROCK INC., holding 26,616,761 shares of the stock with an approximate value of $66.54 million in GERN stocks shares; and VANGUARD GROUP INC, currently with $45.61 million in GERN stock with ownership of nearly -7.527% of the company’s market capitalization.

102 institutional holders increased their position in Geron Corporation [NASDAQ:GERN] by around 17,220,801 shares. Additionally, 47 investors decreased positions by around 21,650,662 shares, while 47 investors held positions by with 150,846,030 shares. The mentioned changes placed institutional holdings at 189,717,493 shares, according to the latest SEC report filing. GERN stock had 42 new institutional investments in for a total of 10,127,509 shares, while 15 institutional investors sold positions of 1,465,739 shares during the same period.

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