Exicure (XCUR) stock underwent a huge rally on Monday, despite ongoing struggles at the biotechnology company. This rally followed its latest earnings release on Friday, which saw it report a surprise profit of $3 million. That’s a positive switch from its net loss of $800,000 from the same period of the year prior.
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However, this profit only came about due to $6 million gained from the reversal of a lease liability. The company terminated the lease for its Chicago facility early. Its gain was also offset by the acquisition of GPCR USA and increased professional services.
While traders are attracted to XCUR stock alongside its latest earnings report, an investment in the company could turn sour. Exicure has warned shareholders that its “existing cash and cash equivalents is not sufficient to continue to fund operations.” Without significant funding, the company doesn’t expect to be able to continue operations in the short term.
Exicure Stock Movement Today?
XCUR stock rallied 21.73% in pre-market trading on Monday, following a 6.22% rally on Friday. However, the shares have fallen 56.91% year-to-date. With its going concern and other issues, today’s movement appears to be a dead cat bounce for Exicure stock.
Is Exicure Stock a Buy, Sell, or Hold?
Turning to Wall Street, coverage of Exicure is limited. Fortunately, Spark, TipRanks’ AI analyst, has it covered. Spark rates Exicure stock a Neutral (48) with no price target. It cites “significant financial challenges, including ongoing losses and reliance on external funding” as reasons for this stance.
