ImmunoGen price outlook as shares spike 30% on positive mirvetuximab data

On Tuesday, ImmunoGen Inc. (NASDAQ:IMGN) shares surged by nearly 30% after reporting positive mirvetuximab data in ovarian cancer. The company announced positive top-line data from the SORAYA trial, which measured the safety and efficacy of mirvetuximab soravtansine. 

However, ImmunoGen shares eased later in the after-hours session, losing more than 4% after the company announced $175 million worth of common stock offering. 

Are you looking for fast-news, hot-tips and market analysis?

Sign-up for the Invezz newsletter, today.

immunoGen shares were down more than 54% from the February highs before Tuesday’s spike trimmed the decline to about 41%. The stock is now down 5.08% this year.

Is it time to buy?

From an investment perspective, ImmunoGen shares trade at a reasonable price-sales ratio of 9.93, making it an interesting option for value investors.

In addition, analysts expect its earnings per share to improve by more than 64% this year before edging lower 8.3% next year.

Therefore, the stock could also gain the interest of short-term growth investors.

Technically, ImmunoGen shares seem to have recently rocketed to complete an upward breakout from a sharply descending channel formation. As a result, the stock recovered from oversold conditions to move towards the overbought levels of the 14-day RSI.

However, with the after-hours pullback erasing Tuesday’s gains, investors could still target more upward profits at about $6.56, or higher at $6.95. On the other hand, if the pullback continues on Wednesday, ImmunoGen could find support at about $5.76, or lower at $5.37.

In summary, the stock could be poised for more gains based on developments in clinical trials of mirvetuximab in ovarian cancer.

Where to buy right now

To invest simply and easily, users need a low-fee broker with a track record of reliability. The following brokers are highly rated, recognised worldwide, and safe to use:

1. Etoro, trusted by over 13m users worldwide. Register here >
2. Skilling, simple, easy to use and regulated. Register here >