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Gemini Therapeutics (GMTX) Stock Soared 45.3% on Positive Analyst Coverage. Is It a Buy?

Simon Mugo trader
Updated 15 Dec 2021

Key points:

  • Gemini Therapeutics stock price soared 45.3% during premarket trading.
  • Analysts at H.C. Wainwright started covering Gemini with a buy rating.
  • Other analysts also have a buy rating on the stock.

The Gemini Therapeutics Inc (NASDAQ: GMTX) stock price soared 45.3% after an analyst at H.C. Wainwright started covering its shares with a buy rating and a price target of $20.

The biotech company is covered by analysts from other investment funds, including Goldman Sachs, which recently lowered its price target to $18 from $20 but maintained a buy rating on the stock.

Stifel Nicolaus, a full-service brokerage and investment management firm, recently slashed their price target on Gemini Therapeutics to $11, from $20, but maintained a buy rating on the firm.

Geminin Therapeutics is covered by six analysts and has an average price target of $15.95 and a consensus “buy” rating.

The biotech company’s latest earnings results were released on November 15, 2021, where it reported a loss per share of ($0.43) beating analysts estimates of a $0.47 loss per share.

Investors looking to establish bullish positions in Gemini will take comfort that several investment funds have recently raised their stakes in the company.

For example, the Bank of New York Mellon Corp recently increased its stake in Gemini by 16.8% in Q3 2021 and now owns 73,059 Gemini shares worth $295,000.

Two Sigma Investments LP also raised its stake in Gemini to 39,493 shares worth $160,000 during Q3 2021.

Gemini Therapeutics has attracted a lot of interest from institutional investors covering the stock and some of whom own its shares.

However, it has not been an easy ride for the company’s investors, who have seen the value of their shares plummet 71.3% since January. Nevertheless, many are hoping that the companies fortunes shall turn around given the renewed interest from institutional investors.

Still, nothing is guaranteed in the markets, and we could quickly get further declines in Gemini’s stock price.

*This is not investment advice. Always do your due diligence before making investment decisions.

Gemini Therapeutics stock price.

Tradingview chart of Gemini Therapeutics stock price 15-12-2021
Source: Tradingview

Gemini Therapeutics stock price rallied 45.26% to trade at $3.53, rising from Tuesday’s closing price of $2.43.

Is Now a Good Time to Invest In Gemini Therapeutics Shares?

Healthcare stocks, including Gemini Therapeutics shares, saw a wave of investors buy their shares during the pandemic. Governments also pumped money into the companies in an attempt to speed up the vaccine process. But, what happens now vaccines have been approved and the pandemic is becoming less prominent? Should we still invest in coronavirus-focused healthcare stocks? Or should we look to firms tackling other areas? Here are the best healthcare stocks to buy now…

Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading