Kinnate Biopharma Inc

Kinnate Biopharma Inc. (NASDAQ: KNTE) is a clinical-stage precision oncology company. It is focused on the discovery, design, and development of small molecule kinase inhibitors for difficult-to-treat, genomically defined cancers. Its lead product candidate is exarafenib (KIN-2787), which is a Rapidly Accelerated Fibrosarcoma (RAF) inhibitor in development for the treatment of patients with lung cancer, melanoma, and other solid tumors.

Recent Financial and Business Updates:

• Kinnate Biopharma Inc. has released its financial results and recent corporate updates for the first quarter of 2023. Notably, the company presented positive data on the monotherapy dose escalation of exarafenib, an investigational pan-RAF inhibitor, at the 2023 AACR Annual Meeting. Moreover, Kinnate provided an update on the ongoing exarafenib monotherapy dose expansion, with a data-informed strategy that prioritizes enrolling patients with BRAF Class II-driven solid tumors.
• The company also disclosed encouraging early responses from the ongoing dose escalation combination arm of exarafenib plus binimetinib, particularly in NRAS mutant melanoma. Additionally, Kinnate announced the addition of two new development candidates to its pipeline, a MEK inhibitor and a c-MET inhibitor, further strengthening its portfolio of potential treatments.
• Furthermore, Kinnate Biopharma is set to present a poster on genomic landscape analysis in FGFR2 at the 2023 American Society of Clinical Oncology Annual Meeting, showcasing its commitment to advancing scientific understanding in the field.
• In terms of financials, Kinnate reported a strong position with USD 231.2 million in cash, cash equivalents, and investments as of March 31, 2023. This robust financial standing is expected to support the company's operations well into early 2025, allowing for continued research and development efforts to advance its promising pipeline of therapeutic candidates.
  

Technical Observation (on the daily chart)

The price of KNTE stock has shown a consistent downward trend since making 52-week high on August 12, 2022, correcting around 81.92%. Currently, the stock is near an important support zone of USD 2.50-USD 2.80, from where price has taken support in the past. The RSI (14 period) momentum indicator is at a value of 39.55, with expectations of some consolidation or an upside momentum. Moreover, the price is currently positioned below both the 20-day SMA and 50-day SMA trend-following indicators, which may act as dynamic short-term resistance levels.

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As per the above-mentioned price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a ‘Speculative Buy’ rating has been given to Kinnate Biopharma Inc. (NASDAQ: KNTE) at the current price of USD 2.76 as of August 03, 2023, at 07:30 am PDT.

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing. 

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

How to Read the Charts?

The Yellow colour line reflects the 20-period simple moving average (SMA) while the blue line indicates the 50- period simple moving average (SMA). SMA helps to identify existing price trends. If the prices are trading above the 20-period and 50-period moving average, then it shows prices are currently trading in a bullish trend.

The Green colour line in the chart’s lower segment reflects the Relative Strength Index (14-Period) which indicates price momentum and signals momentum in trend. A reading of 70 or above suggests overbought status while a reading of 30 or below suggests an oversold status.

The Orange colour lines are the trend lines drawn by connecting two or more price points and used for trend identification purposes. The trend line also acts as a line of support and resistance.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock. 

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock. 

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices. 

The reference date for all price data, currency, technical indicators, support, and resistance levels is August 03, 2023. The reference data in this report has been partly sourced from REFINITIV. 

Abbreviations

CMP: Current Market Price

SMA: Simple Moving Average

RSI: Relative Strength Index

USD: United States dollar 

Note: Trading decisions require a thorough analysis by individual. Technical reports in general chart out metrics that may be assessed by individuals before any stock evaluation. The above are illustrative analytical factors used for evaluating the stocks; other parameters can be looked at along with additional risks per se. Past performance is neither an indicator nor a guarantee of future performance.