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Omega Diagnostics Shares Fell 3.55% Today, Here’s Why

Simon Mugo trader
Updated 14 Oct 2020

Practice Stock Trading
Omega Diagnostics logo

Shares of Omega Diagnostics Group Plc (LON: ODX) fell 3.55% today extending the downtrend that has been in place since hitting new all-time highs on 7th October after the British government orders 1 million coronavirus tests.

Most analysts claim that Omega shares are overvalued given that they are up 592% this year as questions linger about the firm’s market share in the COVID-19 testing industry amid rising global competition.

Omega expects to manufacture at least 175,000 of the 1 million tests ordered by the government from the rapid test consortium of which it is a member. The company also plans to produce up to 200,000 tests per week starting in November, which could generate revenues of up to £5.7 million during its 2021 fiscal year.

It’s hard to predict the future demand for coronavirus tests given that there is no precedence for the pandemic, hence, we cannot say for sure if Omega is a great investment at current prices or not.

Regardless, the diagnostics company is one of the best performing UK stocks attracting a lot of attention from investors, which makes it a stock to watch going forward.

Omega Diagnostics share price

Tradingview chart of Omega Diagnostics share price 14102020

Omega Diagnostics shares today fell 3.55% to trade at 95.0p having fallen from Tuesday’s closing price of 98.5p.

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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