ImmunoGen price outlook as shares spike 30% on positive mirvetuximab data
- ImmunoGen shares on Tuesday spiked by nearly 30%.
- The company reported positive mirvetuximab data in ovarian cancer.
- The stock slid 4% in the after-hours session after offering $175 million in common stock.
On Tuesday, ImmunoGen Inc. (NASDAQ:IMGN) shares surged by nearly 30% after reporting positive mirvetuximab data in ovarian cancer. The company announced positive top-line data from the SORAYA trial, which measured the safety and efficacy of mirvetuximab soravtansine.
However, ImmunoGen shares eased later in the after-hours session, losing more than 4% after the company announced $175 million worth of common stock offering.
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immunoGen shares were down more than 54% from the February highs before Tuesday’s spike trimmed the decline to about 41%. The stock is now down 5.08% this year.
Is it time to buy?
From an investment perspective, ImmunoGen shares trade at a reasonable price-sales ratio of 9.93, making it an interesting option for value investors.
In addition, analysts expect its earnings per share to improve by more than 64% this year before edging lower 8.3% next year.
Therefore, the stock could also gain the interest of short-term growth investors.
Technically, ImmunoGen shares seem to have recently rocketed to complete an upward breakout from a sharply descending channel formation. As a result, the stock recovered from oversold conditions to move towards the overbought levels of the 14-day RSI.
However, with the after-hours pullback erasing Tuesday’s gains, investors could still target more upward profits at about $6.56, or higher at $6.95. On the other hand, if the pullback continues on Wednesday, ImmunoGen could find support at about $5.76, or lower at $5.37.
In summary, the stock could be poised for more gains based on developments in clinical trials of mirvetuximab in ovarian cancer.
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