Bionano Genomics (NASDAQ:BNGO) is a stock that is on the move today. Shares closed out Friday higher by more than 17%. Why? Investors appear to be enticed by this company’s long-term prospects.
Additionally, a number of short-term catalysts have doubled this stock over the past month. Let’s take a look at what this biotech company does, and why it’s rallying hard today.
Bionano is a genome analysis company. This company provides tools and services with its Saphyr system for genetic research and patient testing. Bionano’s Lineagen line of business also provides diagnostic testing for patients with Autism Spectrum Disorder (ASD), among the neurodevelopment disabilities. These technologies allow for the accelerated search for diagnostics and therapeutic options for these core disabilities. Additionally, Bionano’s products allow for more streamlined research into cytogenetics, the study of changes in chromosomes.
A recent InvestorPlace article describes the business model of Bionano quite aptly. In a nutshell, the company’s Saphyr system is gaining a lot of attention among investors. Indeed, there’s a tremendous amount of speculation this company could be on to something big.
Short-Term Catalysts Are Taking BNGO Stock Higher
BNGO stock has rallied a few times in recent days on news of bullish catalysts that have materialized. Among the most important investors should consider are the following:
- Earlier in January, positive test results for the company’s Saphyr system were reported by Bionano. These results appear to be a key catalyst behind this stock’s parabolic rise this year.
- This Saphyr system recently was approved for a pilot program by Canada’s largest diagnostic lab. The market appears to like the validation of one of Bionano’s core products.
- The company announced it received an extension to maintain compliance with the Nasdaq Exchange. As with other stocks that have the risk of delisting weighing on expectations, it appears BNGO stock has assuaged these concerns. The removal of this anchor weighing on this stock seems to have added to BNGO stock’s existing momentum.
- Retail investors have jumped on BNGO stock as a potential moonshot bet. Investor sentiment around stocks like BNGO with tremendous momentum continues to accelerate already impressive gains.
- Bionano’s CEO recently announced a fireside chat with investors for next Thursday. This appears to be going over well with retail investors. Indeed, it seems investors may be more interested in companies that contend to be more open with their investment base. This is also a company doing something good for humanity, so BNGO stock looks like a win-win for everyone right now.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article.