Synergy Pharmaceuticals Inc (NASDAQ: SGYP)
Synergy Pharmaceuticals stock has had an incredible week in the market this week. After billionaire John Paulson’s hedge fund disclosed that it took a 2.11% stake in the company last Friday, investors got excited Monday; driving the stock to incredible highs. While it traded relatively flat Tuesday and Wednesday, more gains came Thursday as investor excitement sent volume skyrocketing. Today’s not looking too bad either. So today, we’ll take a look at the SGYP chart to see what we can expect in the short term from a technical standpoint, and take a look at the stock’s ability to grow in the long run. So, let’s get right to it!
We’re Starting To See A Flag In SGYP
Looking at the chart to the left, there are a few things that are abundantly clear. First off, yesterday was a great day. As a matter of fact, the climb yesterday forms the staff in the flag we’re starting to see. Another thing that’s important to point out is the fact that support is climbing. This means that the stock is not likely to see more downtrends any time soon. It also means that the gap between support and resistance is getting smaller; insinuating that a breakout is likely to come soon. With all of the positive news we’ve seen around the stock recently, I’d imagine that the breakout is going to send the stock in a positive direction.
I’m Also A Big SGYP Fan Long Term
- Follow Big Money – Big money tends to know what to do with their money; and big money happens to like Synergy Pharmaceuticals. As mentioned above, on Friday, billionaire John Paulson’s hedge fund announced that it had taken a 2.11% stake in the company; purchasing 2,095,600 shares of the stock. Obviously Paulson sees something valuable in SGYP; making investors who may have doubted the stock take another look.
- Analyst Opinions – When it comes to analyst opinions, there seems to be a ton of positivity surrounding Synergy Pharmaceuticals. Most recently Canaccord Genuity started coverage on the stock, giving it a “Buy” rating and a price target of $11.
- Faith In The Company & Their Goals – Finally, I have incredible faith in the company and their goals. Their approach is entirely based on a key gastrointestinal hormone known as uroguanylin. This hormone regulates normal digestive functioning; and the absence of the hormone leads to gastrointestinal conditions. Knowing this, SGYP scientists have produced two unique analogs of the hormone known as placanatide and SP-333. Through further research and development, I believe that SGYP has the ability to improve the quality of life for several patients suffering from gastrointestinal conditions. Aside from their products, the company has displayed strong core management with a clear focus on accomplishing their goals. All in all, this should lead to profits in the long run.
What Do You Think?
Where do you think SGYP is headed and why? Let us know in the comments below!