Progenity, Inc.

Progenity, Inc. (NASDAQ: PROG) is a biotechnology company focused on developing and commercializing molecular testing products in the sectors of women's health, gastrointestinal health, and oral biotherapeutics.

Key Highlights

• The company reported YoY growth of 225% in revenues to USD 182 thousand in Q3FY21 (ended September 30, 2021) compared to USD 56 thousand in Q3FY20.
• PROG's net loss reduced to USD 43.74 million during Q3FY21 vs. USD 47.07 million in Q3FY20.
• As of September 30, 2021, the company had cash and cash equivalents of USD 54.14 million and total debt of USD 157.37 million.
• Its net margin in FY20 was -259.1%, whereas the peer median stood at 3.2%.
• On October 26, 2021, PROG exchanged USD 20.175 million aggregate principal amount of 7.25% convertible senior notes in a privately negotiated transaction with certain non-affiliated holders for ~8.51 million common shares. The trade didn't result in any cash proceeds to PROG.
• Stock is currently trading above its crucial short-term (50-day) and long-term (200-day) SMA support levels, a bullish indicator.
• The stock is trading close to the mid-band of its 52-week range of USD 0.66 to USD 7.86.
• PROG's stock price increased 487.69% and 78.71% in the past three and six months, respectively.

Technical Price Chart (as of November 22, 2021). Analysis by Kalkine

Conclusion: Considering the topline growth, no visibility into profitability, technical indicators, and associated risks, we recommend a "Watch" rating on the stock at the closing price of USD 4.45, down 9.0% as of November 22, 2021.

*The reference data in this report has been partly sourced from REFINITIV.