Why Sesen Bio, Inc. (SESN) Stock Was Rallying Today

What just happened? Sesen Bio, Inc. (NASDAQ:SESN) stock value has climbed by nearly 5.73% or (0.13 points) to $2.4 from its previous close of $2.27. Does this growth mean it the best stock to buy right now? The shares seem to have an active trading volume day with a reported 2842869 contracts so far this session. SESN shares had a relatively better volume day versus average trading capacity of 2.54 million shares, but with a 72.38 million float and a 29.71% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for SESN stock indicates that the average analyst price target is $3.5 per share. This means the stock has a potential increase of 45.83% from where the SESN share price has been trading recently which is between $2.03 and $2.29. There are some brokerage firms that offer lower targets than the average, with one of them, even setting their price target at $1.

The shorts are climbing into Sesen Bio, Inc. (SESN) stock. The latest set of short interest data was released on 15 May 2019, and the numbers show a rise in short interest in SESN shares. While short interest still represents only 8.91% of SESN’s float, the number of shares shorted have risen by 490588. The number of shares shorted advanced to 6939090 shares, up from 6448502 shares during the preceding fortnight. With average daily trading volumes at 2113530 shares, days to cover increased to about 1.95532 days. The most recent news story about the stock that appeared in Yahoo Finance‘s news section was titled “Edited Transcript of SESN earnings conference call or presentation 13-May-19 12:00pm GMT” and dated May 27, 2019.

During the recent trading session for Sesen Bio, Inc. (NASDAQ:SESN), the company witnessed their stock rise $0.37 over a week and surge $1.1 from the price 20 days ago. When compared to their established 52-week high of $2.89, the high they recorded in their recent session happens to be lower. Their established 52-week high was attained by the company on 05/06/18. The recent low of $0.66 stood for a -16.96% since 01/18/19, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 1.61 is also allocated to the stock. Since the beta is greater than one, it implies that the stock is more volatile than the market, a data that traders are keeping close attention to.

Looking at the current readings for Sesen Bio, Inc., the two-week RSI stands at 84.53. This figure suggests that SESN stock, for now, is oversold, meaning that the shares are not stable in terms of price movement. The stochastic readings, on the other hand, based on the current SESN readings is similarly very revealing as it has a stochastic reading of 88.03% at this stage. This figure means that SESN share price today is being oversold.

Technical chart claims that Sesen Bio, Inc. (SESN) would settle between $2.36/share to $2.46/share level. However, if the stock price goes below the $2.1 mark, then the market for Sesen Bio, Inc. becomes much weaker. If that happens, the stock price might even plunge as low as $1.94 for its downside target. The stock is currently in the green zone of MACD, with the indicator reading 0.29. Traders are always alerted for the move of a stock above or below the zero line due to the fact that the reading is an indicator of the position of the short-term average relative to the long-term average. If the MACD is above the zero line, then the short-term average relative is above that of the long-term average, thus implying an upward momentum. Vice versa is the case if the MACD is below the zero line.

SESN equity has an average rating of 1.75, with the figure leaning towards a bullish end. 4 analysts who tracked the company were contacted by Reuters. Amongst them, 1 rated the stock as a hold while the remaining 3 were split even though not equally. Some analysts rate the stock as a buy or a strong buy while no rated it as a sell. 3 analysts rated Sesen Bio, Inc. (NASDAQ:SESN) as a buy or a strong buy while not a single analyst advised that investors should desist from purchasing the stock or sell them if they already own the company’s stock.

Moving on, SESN stock price is currently trading at 0X forward 12-month Consensus EPS estimates, and its P/S ratio is 1.26 while for the average stock in the same group, the multiple is 49.5. Sesen Bio, Inc. current P/E ratio of 6.84 means it is trading at a discount against its industry’s 69.3. In the past 5 years, this ratio for the stock has been fluctuating between 21.95 and 21.95.