CorMedix Inc. (NYSEAMERICAN: CRMD) is having an incredibly strong day in the market today. However, if you’re looking for press releases and SEC filings, you’ll likely be disappointed. There is none of that out there. Nonetheless, there is a good reason for the gains. Today, we’ll talk about:
- Why CRMD is up;
- what we’re seeing from the stock; and
- what we’ll be watching for ahead.
CRMD Was Initiated At Roth Capital
As mentioned above, CorMedix is having a great day in the market today, but the company hasn’t released any news. So, what’s the deal? Why is the stock gaining?
The gains seem to be the result of the fact that Roth Capital has initiated coverage on CRMD. According to various reports, Roth Capital analyst Jerry Isaacson has initiated coverage on the stock with an initial rating of “Buy” and a $6 price target.
In the note, the analyst pointed to the development of Neutrolin for the prevention of catheter-related blood stream infections in patients with central venous catheters. The analyst said that he believes that there is a large market opportunity for this treatment across multiple patient populations. He also pointed to the fact that CRMD has received Fast-Track designation from the FDA as well as QDIP designation. Finally, the analyst pointed to the 10.5 years of market exclusivity that the company will enjoy should the treatment be approved as yet another reason to be excited about the stock.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news leads to moves. In the case of CorMedix, the news proved to be overwhelmingly positive. Sure, the company didn’t release any SEC filings or issue any press releases, but when a firm like Roth Capital weighs in, investors pay attention. So, it’s not surprising to see that the stock is climbing today. Especially considering the price target that suggests gains in multiples to come. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (11:38), CRMD is trading at $1.47 per share after a gain of $0.12 per share or 8.89% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on CRMD. In particular, we’re interested in following the continued development of Neutrolin as the treatment has shown serious promise thus far. We’re also interested in seeing if Roth Capital is correct here. If so, the stock represents a potentially tremendous long-run opportunity. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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