Shares of Obalon Therapeutics, Inc. (OBLN) stock were high in the aftermarket session on Thursday after facing the downtrend of 9.06% to drop at $2.31 a share at the previous closing. OBLN stock price saw a surge of 8.23% to reach $2.5 a share in the late hours of Thursday 15, 2021. Let’s see the reason behind this bullish sentiment.
There is no recent news by Obalon Therapeuticsthat might support the bullish sentiment. We find no signs of analysts upgrades or upswing targeted per share price of OBLN stock to explain this rally. Sometimes social media hype makes the stock high, but this fact is not supporting the OBLN right now. So, what you need to know now? Here are some recent events related to OBLN .
WeissLaw Reminder of Ongoing Investigation Against OBLN:
WeissLaw reminded the shareholders of OBLN stock on April 09, 2021, about its ongoing investigations against Obalon Therapeutics’ board of directors. The investigation is related to the possible breach of fiduciary and violation of laws in connection with the proposed merger of OBLN with ReShape Lifesciences Inc. According to the merger agreement, Obalon Therapeutics will be renamed ReShape Lifesciences Inc after the acquiring of the former by the latter via an all-stock transaction.
Financial View of OBLN stock:
Back to the previous month, on March 12, 2021, OBLN stock did announce its fourth-quarter and full-year financial results of 2020 a summary of which is given below.
For the fourth quarter, OBLN stock posted revenue of $0.1 million as compared to $0.8 in the same period of the prior year. The decrease was mainly due to the suspension of operations in the second quarter.Net loss decreased to $1.3 million in the fourth quarter while it was $4.9 million in the same quarter of the prior year.R&D expenses were down from $1.5 million in the Q4 of 2019 to $0.2 million in Q4 of 2020.
The full-year 2020 revenue of the OBLN stock reduced to $1.6 million as compared to $3.3 million in 2019 due to suspension of operations.Net loss for the fiscal year 2020 was decreased to $12.3 million as compared to $23.7 million net loss of 2019.R&D expenses for the full year were reduced from $6.9 million of 2019 to $2.5 million in 2020.
At the end of 2020, OBLN stock had cash and cash equivalents of $3.9 million and $0.4 million debt attributed to its Payroll Protection Program loan.
OBLN stock went up in the late hours of Thursday despite the absence of any reason. Overall growth declined according to the recently announced earnings report due to a halt in OBLN’s operations. In short, investors need to do a lot of homework before adding this stock to their portfolio.