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Rocket Pharmaceuticals Inc. (NASDAQ: RCKT) is an emerging, clinical-stage biotechnology company focused on developing first-in-class gene therapy treatment options for rare, undertreated diseases. Rocket’s multi-platform development approach applies the well-established lentiviral virus (LVV). The share price of RCKT has been falling in the last 3 months, but positive clinical trials and a broader recovery for midcap biotech stocks could boost its share price over the coming months. If this is not enough reason to keep in your watchlist, it has received positive ratings from most analysts, and its gene therapy treatment could bring about new therapies in the pharmaceutical sector. Although a sudden change in regulation could offset its stock price, the risks to a complete overhaul of healthcare regulation are low.
RCKT Stock Price
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Rocket gained 1.45% on Friday, Oct. 22, 2021, rising from $28.97 to $29.39. During the day, the stock fluctuated 4.50% from a day low at $28.23 to a day high of $29.50. The price has been going up and down for this period and showed a 1.77% gain for the last 2 weeks. Volume fell on that day by 81,000 shares and in total, 186,000 shares were bought and sold for approximately $5.48 million. You should take into consideration that falling volume on higher prices causes divergence and may be an early warning about possible changes over the following few days.
Rocket Stock vs. Competitors
As a small-cap biotech company, Rocket is a strong contender against its mid-cap peers such as CRISPR Therapeutics AG (NASDAQ: CRSP) with a market cap of over $7 billion and a possible launch of its first product by 2024. However, Rocket has a market cap of $1.86 billion while competitors such as Sarepta Therapeutics (NASDAQ: SRPT) have a market cap of $6.85 billion, despite posting negative earnings per share of 8.02%. Meanwhile, Teladoc Health Inc. (NYSE: TDOC) has a market capitalization of $22.077 billion and has good prospects according to Cathie Woods, CEO of Ark Invest. Some competitors with a higher market capitalization of $7.07 billion have positive earnings per share in the 5.9% range. While these companies have larger market capitalization and higher earnings per share in some cases, Rocket’s share price could recover due to positive results from clinical trials.
RCKT Stock Forecast
Rocket Pharmaceuticals has seen its share price fall about 41% so far this year. Rocket is developing gene therapies to treat a number of conditions, including Danon disease, an often-deadly genetic disorder that causes heart failure. Its lead program is a lentiviral-based gene therapy to treat Fanconi anemia, a rare genetic bone marrow disorder. It has rebounded a bit since mid-August after the Food and Drug Administration lifted a clinical hold it had placed on the company’s Danon disease trial in May. In a report issued on August 5, Yaron Werber from Cowen Inc. (NASDAQ: COWN) maintained a Buy rating on Rocket Pharmaceuticals, and its shares closed last Friday at $26.46, nearing its 52-week high of $27.73. Werber expects the company’s Fanconi anemia gene therapy to enter the market next year and finds that the Fanconi anemia program alone could generate $1.9 billion in cumulative revenue. He expects Rocket to create long-term shareholder value as its gene therapy programs advance through clinical development before entering the market late next year. Based on this, Rocket Pharmaceuticals may present a good buy opportunity for long-term investors although bearish episodes could result before its therapies reach the market.
According to TipRanks.com, Werber is a 5-star analyst with an average return of 23.1% and a 71.0% success rate. Werber covers the healthcare sector, focusing on stocks such as Ionis Pharmaceuticals Inc. (NASDAQ: IONS), Akcea Therapeutics Inc. (NASDAQ: AKCA) and Acceleron Pharma Inc. (NASDAQ: XLRN). Rocket Pharmaceuticals has an analyst consensus of Strong Buy, with a price target consensus of $36.33, representing a 37.1% upside.
The average target price for RCKT is $69.70, implying a 115% gain over the recent price of $29 to $30. The stock has a market value of $2.1 billion. Of the 12 analysts tracked by FactSet who cover the stock, all rate it a Buy. Rocket has been slumping for the last 3 months, but its share price could recover due to positive news on successful clinical trials and the ultimate creation of marketable pharmaceutical products.
RCKT Stock News
On October 20, Rocket Pharmaceuticals posted interim data from its immunodeficiency gene therapy trial. Rocket Pharmaceuticals presented updates on interim data, which illustrated preliminary efficiency in all 7 patients. The company will release its earnings on Wednesday, Nov. 3, 2021, and analysts from Zacks Investment Research predict earnings per share at -0.58 from -0.53 last year. You can add Rocket Pharmaceuticals to your watchlist here.
How to Buy Rocket Pharmaceuticals Inc. (NASDAQ: RCKT) Stock
If you already have a broker, it will likely list RCKT stock. If not, follow the steps below.
Step 1: Pick a brokerage.
If you are interested in opening a new brokerage account, take a look at Benzinga’s list of favorite brokers here.
Step 2: Decide how many shares you want.
Once you’ve established your trading account at a broker with RCKT shares, you’ll need to figure out how many to buy. Consider your risk tolerance and exposure to other investments before deciding how many shares to purchase. Avoid devoting too much capital to a single issue.
Step 3: Choose your order type.
Buying shares isn’t as simple as pressing a button or tapping a screen. You’ll need to decide how to order your shares, and that’s usually done via 2 choices: a market order or a limit order. A market order will immediately execute your trade for the best available market price. A limit order allows you to set a price point that triggers activation of the order when reached. Limit orders allow you to enter trades at ideal price points without keeping your eye on the stock continuously.
Step 4: Execute your trade.
Once you’ve decided on a trade strategy, you’ll need to find an ideal entry point to start your position. Here’s where technical analysis comes in handy. By using concepts like support and resistance, you can execute your trade precisely and maximize your returns. Sure, getting shares at $26.50 instead of $26.75 may seem like a minimal gain, but when you’re buying in volume, those quarters can pile up.
Best Online Stock Brokers for RCKT Stock
For tech-savvy investors or traders, the table below illustrates a list of brokers where you can buy RCKT. This list provides an overview of key features on each brokerage platform to help you make informed decisions.
- Best For:Active and Global TradersVIEW PROS & CONS:Securely through Interactive Brokers’ website
RCKT on Benzinga Pro
RCKT has been trending downwards for the last 3 months. Although it has reversed earlier losses, technical indicators suggest its share price may fall further before recovering. A new floor appears to be set around $27.40 to $27.70, but a bullish pattern does not appear to be forming just yet. The knee-jerk reaction to positive test results from clinical data could boost its share price over the long run from sales of vital therapeutics.
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Screenshot taken from Benzinga Pro on 27-10-2021
The Harami cross shows that the stock is currently in a bearish pattern, and a major break above $28.93 could boost positive momentum and interrupt the current downtrend. The 50-day moving average still suggests that the stock will remain locked in negative territory in the short run. Positive news on clinical trials and a positive earnings report could boost investor sentiment and relaunch the stock.
Rocket Pharmaceuticals is poised to recover in the coming year
Stay tuned for more news, updates, and analysis on Rocket Pharmaceuticals. Its positive rating from analysts and positive results from clinical studies suggest that its share price could perform well in the coming year.
Frequently Asked Questions
What is gene therapy?
Gene therapy is a technique that modifies a person’s genes to treat or cure disease. Gene therapies can work by several mechanisms, including the replacement of a disease-causing gene with a healthy copy of the gene.
Should I buy Rocket Pharmaceuticals?
RCKT could outperform in the coming months, and it holds a strong Buy rating from analysts in late October 2021. It has shown positive results from its clinical trials, and its share price could rally after a successful launch.
What are the main risks to Rocket Pharmaceuticals?
RCKT may be impacted by U.S. regulation forcing it to lower its drug prices. However, a change like that would require support from both sides of the political spectrum, which is unlikely to happen just yet. A relaxation of patent laws could blunt future innovations, but intellectual property rights form the bedrock of the U.S. economy, so the suspensions of patent laws during the pandemic were an anomaly.
About Henri Kouam
Henri Kouam is an economist and machine learning enthusiast. He currently builds Machine Learning models to help clients across Europe forecast a range of asset classes such as cryptocurrencies while working with, the Nkafu Policy Institute, an African-based think tank to help inform economic policy. He equally works as a consultant for NY-based ”Global Wonks”, where he has named wonk of the week twice due to his actionable intelligence on North America.