Why Organovo Stock Is Up Today

Organovo Holdings, Inc. ONVO shares are trading higher Monday after the company announced Phase 2 results for FXR314. 

The Details:

Organovo released the complete details of its 16-week, randomized, placebo-controlled, multi-center Phase 2 study of the non-steroidal, non-bile acid FXR agonist FXR314 for the treatment of metabolic function-associated steatohepatitis (MASH). 

Study results demonstrated statistically significant reduction in liver fat content from baseline in patients receiving FXR314 compared to placebo, and FXR314 was also found to be safe and well tolerated.

“The key findings of this study are that once daily oral FXR314 demonstrated statistically significant liver fat reduction and excellent tolerability. Whereas other FXR agonists have had challenges in providing clear benefit without significant pruritus or other adverse events, or have had lack of efficacy potentially related to lack of sustained exposure, we are pleased to note FXR314’s data demonstrate it clearly rises above previous problems seen with the class,” stated Keith Murphy, Organovo’s Executive Chairman. 

Organovo shares are moving on heavy trading volume following the release of Phase 2 results Monday. According to data from Benzinga Pro, more than 45 million shares have already been traded in the session, compared to the stock’s 100-day average of less than 102,000 shares.

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Is ONVO A Good Stock To Buy?

An investor can make a few decisions when deciding whether a stock is a good buy. In addition to valuation metrics and price action which you can find on Benzinga's quote pages – like Organovo Holdings‘s page for example – there are factors like whether or not a company pays a dividend or buys a large portion of its stock each quarter.

These are known as capital allocation programs. Organovo Holdings does not pay a dividend, but obviously has a few ways it can return value to shareholders. Feel free to search Benzinga's dividend calendar for the next company that is due to pay a dividend and determine what kind of yield you can earn for holding a share of the company.

For example, if you're looking to earn an annualized return of 16.59%, you'll need to buy a share of Orchid Island Cap by the April 29. Once done, you can expect to receive a nominal payout of $0.12 on May. 30.

Buyback programs are obviously different and highly variable. A company can approve a buyback program and purchase shares as it sees fit over the course of time in which the buyback was authorized. Looking through the latest news on Organovo Holdings will often yield whether or not the company has approved a buyback program recently. Buyback programs usually serve as a support for share prices, serving as a backstop for demand.

ONVO Price Action: According to Benzinga Pro, Organovo Holdings shares are up 29.7% at $1.31 at the time of publication Monday.

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