Sangamo Therapeutics, Inc. (SGMO) Stock Is Heating Up. Time to Buy?

For the period that ended November 15, 2019, the short interest in Sangamo Therapeutics, Inc. (NASDAQ:SGMO) stock is on the up. The 8.13% rise could be an indication that investors and traders expect a drop in the share price, often as a result of a drop in the business’ fundamentals. The average brokerage opinion at 2.1 suggests acquiring these shares. Between October 31 and November 15, the total count of shorted shares totalled 18.16 million. That number was 1,365,017 more shares compared with the total of 16.8 million shares in the space of prior two weeks, which suggests more traders or funds are betting that the company stock will move down. The average daily volume for SGMO at the November 15th settlement surged to 1,099,534, versus 923,719 at the October 31st report. That led days to cover to move at 16.517182, a 9.16% decrease compared to the 18.18322 days to cover recorded at the prior short interest data release.

On December 03, 2019, Sangamo Therapeutics, Inc. (NASDAQ:SGMO) shares gained 6.36% or 0.68 points to close at $11.37 with a heavy trading volume of 3.096 million shares. It opened the trading session at $11.4, the shares rose to $11.6 and dropped to $11.14, the range by which the price of stock traded the whole day. The company now has a market cap of $1.31 billion and currently has 115.51 million outstanding shares. Sangamo Therapeutics, Inc. (SGMO) stock has accumulated 20.32 percent of market value in 21 trading days.

SGMO stock’s trailing 3-year beta is 2.82, meaning there will be a greater rate of return, although posing a higher risk. The part of a firm’s profit given to each outstanding share of regular stock was -$1.1 share in the trailing 52 weeks. The stock’s value fallen -0.96 percent year to date (YTD) compared to a decline of -8.08 percent in 52 week’s period. The firm’s shares are still trading -18.26 percent below its 1-year high of $13.91 and 81.63 percent up from 52-week low of $6.26. The average consensus ranking on the company is 2.1, on a ranging where 5 is equal to a consensus sell rating. In other words, the mean analyst recommendations are ranking this stock as a sell.

Sangamo Therapeutics, Inc. (SGMO) is most likely going to rise 81.79 percent in the coming 12 months, as per price target approximations compiled by finviz. Nevertheless, they have set the price target at a $34-month high price target. This represents a whopping 199.03 percent increase from the current trading of shares. The 52-week median price target given by the analysts is $17.5, which means a return possibility of 53.91 percent in comparison with the closing price of the stock of $11.37 on December 03. The lowest price set for the stock is $11 — just above -3.25 percent from SGMO share price now.

Past records have indicated that shares in Sangamo Therapeutics, Inc. declined on 23 different earnings reaction days and we have yet to see whether this trend will play out and remain in place when the company reports upcoming earnings.

Let’s take a glimpse at some insider activity at Sangamo Therapeutics, Inc. (NASDAQ:SGMO) and observe the pattern. The earliest insider trade happened on 05/15/2019. Yi Kathy parted with a total of 5 thousand shares of the firm at average share price of $10. The total amount for the sale was set at $50 thousand. On completing this exchange, the EVP & CFO account balance was 25.51 thousand shares. The stock grew 13.7 percent from that insider sale. On 04/15/2019, Yi Kathy, EVP & CFO, did a sale of 5 thousand shares at a price of $12.11 per share. This got rid of 60.55 thousand shares from the insider’s fortune and the stock experienced a -6.11 percent retreat in price since the news became public. This exchange saw 25.51 thousand shares get out from the EVP & CFO account.

On 03/15/2019, EVP & CFO Yi Kathy recorded a sale transaction valued at $50 thousand. The sale at $10 a share has eliminated 5 thousand shares from the insider’s portfolio position. Meanwhile, shares price witnessed 13.7 percent increase since the transaction reporting date. The company insider is left with 25.51 thousand shares remaining in the account. Yi Kathy, who works as EVP & CFO at the company, performed a sale of 5 thousand shares in a transaction worth $50 thousand. The disposal recorded on 03/01/2019 was priced at $10 per share. The stock price soared 13.7 percent since the transaction. Yi Kathy currently holds a stake of 25.51 thousand in SGMO stock which is worth $290.07 thousand after the insider selling.

The stock is lingering around the initial support level of $11.14. After this, the following support is at the zone of $10.91. Up until the time the SGMO stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 77.98 on the daily chart, and this may be a cause for concern. In case the price goes below $10.91 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $11.6 level may cause a pull-back move approaching $11.83 mark.