MediciNova (NASDAQ:MNOV) Stock Price Breaks Above Two Hundred Day Moving Average - Here's Why

Key Points

• MediciNova shares broke above their 200-day moving average, reaching $1.72 before last trading at $1.65, compared with the $1.51 long-term average.
• Analyst sentiment is generally positive: the stock has a consensus “Moderate Buy” rating and a $7.75 price target, including a $6.00 target from Roth Capital.
• Despite reporting better-than-expected quarterly EPS and revenue, MediciNova remains unprofitable; a major shareholder also sold 640,000 shares, reducing its ownership by 11.63%.

MediciNova, Inc. (NASDAQ:MNOV - Get Free Report)'s stock price passed above its two hundred day moving average during trading on Tuesday. The stock has a two hundred day moving average of $1.51 and traded as high as $1.72. MediciNova shares last traded at $1.65, with a volume of 119,977 shares trading hands.

Analyst Upgrades and Downgrades

A number of equities research analysts have issued reports on MNOV shares. Weiss Ratings raised MediciNova from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Wednesday, September 2nd. Roth Capital initiated coverage on shares of MediciNova in a research note on Thursday, September 17th. They set a "buy" rating and a $6.00 target price on the stock. Finally, HC Wainwright reaffirmed a "buy" rating on shares of MediciNova in a report on Tuesday, September 29th. One investment analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, MediciNova presently has a consensus rating of "Moderate Buy" and a consensus price target of $7.75.

MediciNova Stock Down 6.0%

The stock has a market cap of $81.21 million, a PE ratio of -7.86 and a beta of 0.61. The firm has a fifty day moving average of $1.75 and a 200 day moving average of $1.51.

MediciNova (NASDAQ:MNOV - Get Free Report) last announced its quarterly earnings results on Thursday, August 13th. The biopharmaceutical company reported ($0.05) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.06) by $0.01. MediciNova had a negative return on equity of 26.51% and a negative net margin of 1,168.70%.The company had revenue of $0.46 million during the quarter, compared to the consensus estimate of $0.07 million. On average, equities research analysts forecast that MediciNova, Inc. will post -0.25 EPS for the current fiscal year.

Insider Transactions at MediciNova

In related news, major shareholder 3D Investment Partners Pte. Lt sold 640,000 shares of the company's stock in a transaction that occurred on Friday, September 25th. The stock was sold at an average price of $2.70, for a total value of $1,728,000.00. Following the completion of the transaction, the insider directly owned 4,862,047 shares of the company's stock, valued at $13,127,526.90. This represents a 11.63% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. 14.00% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A hedge fund recently bought a new stake in MediciNova stock. Bank of New York Mellon Corp purchased a new position in shares of MediciNova, Inc. (NASDAQ:MNOV - Free Report) during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission. The firm purchased 78,277 shares of the biopharmaceutical company's stock, valued at approximately $103,000. Bank of New York Mellon Corp owned approximately 0.16% of MediciNova at the end of the most recent reporting period. Institutional investors and hedge funds own 9.90% of the company's stock.

About MediciNova

MediciNova, Inc is a clinical-stage biopharmaceutical company focused on developing small-molecule medicines for neurological, inflammatory, and other serious medical conditions. The company is headquartered in La Jolla, California, and its programs are primarily directed toward conditions with significant unmet treatment needs.

Its lead investigational product, MN-166 (ibudilast), is being studied in several neurological indications, including amyotrophic lateral sclerosis, progressive multiple sclerosis, and substance use disorders.

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