Shares of the Cyclerion Therapeutics, Inc. (CYCN) stock rallied in the premarket today on October 20, 2021. CYCN stock price saw a push of 8.49% to reach $2.89 a share at the time of this writing. The stock was also green in the previous trade and went up by 2.31% at closing. Let’s deep dive to explore more of it.
There is no press release or any announcement by the CYCN stock to justify the bullish sentiment today. However, it has been reported that Truist Securities has initiated the coverage on the CYCN stock. Truist analyst John Lee gave a Buy rating to the CYCN stock and set a $14 price target for the per-share price of this stock. This resulted in the hype in the per-share price of the Cyclerion stock. Also, the discussions between investors in the social media platform are driving the stock price high today. For your intuition, let’s discuss recent events of this stock.
Publication of Preclinical Data of sGC Simulator:
On September 22, 2021, CYCN stock did announce a publication that demonstrated a reduction in Neuroinflammation by sGC Simulator. According to the publication, small molecule soluble guanylate cyclase stimulator reduced the markers that are associated with neuroinflammation in multiple preclinical models. The results were statistically significant as the sGC stimulator significantly decreased the several inflammatory genes, including TNF, CD40, Icam1, Cybb, and GFAP, in rodent models.
Financial View of CYCN stock:
- According to the second quarter of 2021 financial results, CYCN stock spent $12.1 million in research and development expenses in the second quarter of 2021. This compares to the $13.8 million in research and development expenses for the second quarter of 2020. The decrease was primarily attributable to the decrease in salaries, stock-based compensation, and other staff-related expenses.
- CYCN stock spent $6.2 million in general and administrative expenses in the second quarter of 2021. This represents a decrease of $0.4 million as compared to $6.6 million in the same quarter of the previous year. The decrease was mainly due to a decrease in salaries, stock-based compensation, and other staff-related expenses.
- CYCN stock suffered a net loss of $16.2 million in the second quarter of 2021 as compared to a net loss of $19.5 million in the same tenure of the previous year.
- By the end of the second quarter, Cyclerion stock had $70 million in cash and cash equivalents.
Things are going well for the CYCN stock as far as market sentiment is concerned. The BUY rating by Truist analyst John Lee reflects to the positive growth of this stock in the future.