Aptose Biosciences Climbs 17% to Reclaim Some Losses

Aptose Biosciences (TSX:APS)(NASDAQ:APTO) recovered 17% after losing 45% this week from results of its drug trial gave investors a wait-and-see report.

| More on:

Aptose Biosciences (TSX:APS)(NASDAQ:APTO) shares climbed 17% on Thursday after losing up to 45% earlier this week. This came after the company announced results from its leukemia drug trial.

What happened?

Shares of Aptose were already in free fall before this recent selloff. The company saw shares drop from 52-week highs of $9 per share, down to $1.39, a loss of 85%. Since that time, shares have recovered only slightly to $1.76 as of writing.

This recent selloff comes after the company reported its luxeptinib drug trial showed “meaningful benefit in all responders” of its 34-patient study. The area aims to help treat acute myelogenous leukemia (ACL) relapses, where treatment remains difficult.

The problem is two-fold, however. Aptose now must wait for its phase two of the trial to begin in the first half of 2022, and it was a small study to begin with. So, investors are left with yet another wait-and-see situation.

So what?

The recent dropoff meant other investors saw the fall as an opportunity. And that’s the angle some analysts believe they should take. The last report left investors with lukewarm results as well back in June, but analysts now recommend it as a strong long-term hold.

Yet in this post-recovery world, where investors want the next big thing after the COVID-19 vaccine, it seems some aren’t willing to wait. That puts the stock in a continued volatile situation — even after this 17% gain.

After all, 17% isn’t much when you’re trading at about $1.75.

Now what?

If you’re willing to watch Aptose consistently for signs of improvement, this could be a great momentum buy. Now is a prime example as it recovers some losses. In fact, one analyst recently increased his target price from $9 to $14, coming from strong quarterly results that beat expectations. That’s a potential upside of 713% as of writing! They also are optimistic about this new drug, with 30-fold more potency.

So, if you believe that Aptose could eventually recover from these enormous losses, analysts continue to recommend it as a solid long-term buy. But if you’re looking for the next big thing after the vaccine, you might be waiting a bit longer.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

More on Investing

Investing

2 REITs Worth Buying With $10,000 for Long-Term Income Generation

Killam Apartment REIT (TSX:KMP.UN) and another top cash cow are worth buying right now.

Read more »

top TSX stocks to buy
Bank Stocks

1 Multibagger Financial Stock Down 6% Paying an Iron-Clad Dividend

This dividend stock has paid a dividend since 1833! And doesn't look to be slowing down any time soon.

Read more »

Canadian Dollars bills
Dividend Stocks

Building a $35,500 Passive-Income Stream With Just $500 Monthly Investments

Buying iShares S&P/TSX Capped Composite Index Fund (TSX:XIC) over dates could eventually take you there.

Read more »

Retirees sip their morning coffee outside.
Dividend Stocks

Turn Your TFSA Into a Fund for a Comfortable Retirement

A calculated, well-disciplined, and smart approach to TFSA investing can help you turn the account into a way to fund…

Read more »

Asset Management
Stocks for Beginners

How to Build a $40,000 Investment Portfolio That Requires Minimal Maintenance

Building an investment portfolio can't be easier than this. Simply dollar-cost average into XEQT for equity exposure and long-term wealth…

Read more »

Man holds Canadian dollars in differing amounts
Dividend Stocks

Want Decades of Passive Income? 3 Stocks to Buy Now and Hold Forever

These TSX stocks have paid and increased their dividends for years and are well-positioned to pay higher dividends in future…

Read more »

dividend growth for passive income
Investing

Why Investing $5,000 in These Growth Areas Makes Sense Now

Investing in growth areas least impacted by U.S. tariffs can deliver substantial financial windfall.

Read more »

hand stacks coins
Dividend Stocks

How to Allocate $30,000 for Both Current Income and Future Growth

Are you wondering how to earn income and grow your capital (at the same time)? These three quality TSX stocks…

Read more »