The after-market brought a tremendous swing to Femasys Inc. (NASDAQ: FEMY), with an over 34% rise seen in its price. This follows after a slow trade day netting in a 2% decline, and an unstable week, losing 5% in price. The women’s healthcare biomedical company has been on a gradual decline with brief pricing peaks actualizing since back in November. In fact, following the initial peak during its IPO in June last year of $12, FEMY has been falling since. The persistent bearish trajectory raises concerns amongst investors towards the stock. This recent price surge, however, has the market on edge.
Possible Anticipation for FEMY Earnings Release
FEMY’s tumble very much link to the lack of any catalyst to help boost market confidence towards it. The recent annual reports released over a year ago, were well before the stock had become public. Earnings reports for last year’s performance are expected to be out tomorrow, which is likely to signify growth during the year. Key figures such as revenue, profitability as well as liquidity will be the key focus in FEMY’s performance throughout 2021. The recent after-hours price hike presumably links to this anticipation attached to the earnings release. It is clear that market participants are getting a hold on the stock to beat the market before updates from tomorrow. The move rests on the assumption that the stock will be revealed to be potentially undervalued, given performance in 2021.
Growth Prospects for Femasys Inc.
The assumption of a possible FEMY undervaluation is not an unsubstantiated position by the market. The business does hold significant potential which could see a possible disruption to the birth control and infertility markets. Each of these is a multibillion-dollar industry in many parts of the globe. With heavy investments towards research last year, success could deliver substantial gains for investors. Moreover, already having products like FemaVue in the market, the company is less risky than a typical early-stage biopharmaceutical. In-progress products like FemaBloc and FemaChec present far safer, more convenient, and less costly alternatives to permanent birth control. The company describes this as being a $20 billion global industry with steady growth over the years.
FEMY’s bearish slide since its IPO in June could potentially be seeing a presently unfolding reversal. This links to an earnings report expected to see released within the week. Given the industrial and market potential Femasys Inc taps into, bulls anticipate an undervaluation revelation with the earnings release.