Addex Therapeutics Ltd. Sponsored ADR (NASDAQ: ADXN) experienced a significant increase in short interest during December. As of December 15, the total short interest reached 9,599 shares, marking an impressive growth of 86.7% from the November 30 total of 5,141 shares. This surge indicates that approximately 0.9% of the company’s shares are currently short sold.
The days-to-cover ratio, which reflects how many days it would take to cover all short positions based on average trading volume, stands at 1.2 days, calculated from an average daily trading volume of 8,344 shares. This data suggests a heightened interest in short selling for Addex Therapeutics, reflecting a cautious outlook among investors regarding the company’s future performance.
Wall Street Analysts Provide Cautious Outlook
Adding to the cautious sentiment, Weiss Ratings reiterated a “sell (e+)” rating for Addex Therapeutics shares in a research report released on October 14. Currently, one research analyst has assigned a Sell rating to the stock, leading to a consensus rating of “Sell,” according to data from MarketBeat. This consensus reflects the overall uncertainty surrounding the company’s financial health and future prospects.
Financial Performance and Company Profile
In its most recent financial disclosure, Addex Therapeutics reported its quarterly earnings results on December 4. The company posted a loss of ($1.51) in earnings per share (EPS) for the quarter, alongside a modest revenue figure of $0.04 million. The financial metrics reveal a net margin of 3,584.49% and a negative return on equity of 80.69%, raising concerns about profitability and operational efficiency.
Based in Geneva, Switzerland, with a research office in Cambridge, Massachusetts, Addex Therapeutics is a clinical-stage biopharmaceutical firm focused on the discovery and development of small-molecule allosteric modulators aimed at treating central nervous system disorders. Established in 1999, the company is primarily engaged in addressing unmet medical needs in neurology and psychiatry, specifically targeting metabotropic glutamate (mGlu) receptors and GABAB receptors.
The firm’s lead candidate, dipraglurant (ADX48621), is currently in clinical development for the treatment of levodopa-induced dyskinesia in patients with Parkinson’s disease. As Addex continues its research and development efforts, the market will be closely monitoring its progress and financial disclosures to gauge future performance.
