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SOUTH SAN FRANCISCO - RAPT Therapeutics, Inc. (Nasdaq: RAPT), currently trading at $1.09 with a market capitalization of $144 million, announced Friday that it will implement a 1-for-8 reverse stock split of its common stock, effective June 16, 2025. According to InvestingPro analysis, the company appears undervalued based on its Fair Value metrics.
The clinical-stage biopharmaceutical company’s shares will begin trading on a split-adjusted basis on June 17 under the same RAPT ticker symbol but with a new CUSIP number (75382E 208). While the company maintains a strong liquidity position with a current ratio of 21.11 and more cash than debt on its balance sheet, InvestingPro data indicates it’s quickly burning through cash.
The reverse split will reduce RAPT’s outstanding shares from approximately 132.3 million to 16.5 million. For every eight shares currently held, stockholders will receive one share. No fractional shares will be issued; instead, affected stockholders will receive cash payments.
The company’s authorized shares will remain at 500 million, though the total available for future issuance will increase. Proportionate adjustments will be made to RAPT’s outstanding pre-funded warrants, stock options, and shares issuable under equity incentive plans.
RAPT Therapeutics focuses on developing therapies for inflammatory and immunological diseases. The company did not specify reasons for the reverse split in its press release statement.
Reverse stock splits are typically implemented to increase a company’s share price by reducing the number of outstanding shares, though the overall market capitalization remains unchanged.
The announcement comes as RAPT continues its work as a clinical-stage immunology-based biopharmaceutical company developing novel therapies for patients with inflammatory conditions.
In other recent news, Rapt Therapeutics has been the subject of several analyst reports. Clear Street analysts initiated coverage with a Buy rating and a price target of $3.00, citing confidence in RPT904, a promising anti-IgE antibody for food allergies and chronic spontaneous urticaria. H.C. Wainwright also issued a Buy rating, setting a higher price target of $6.00, highlighting RPT904’s improved pharmacokinetics and commercially validated mechanism of action. In contrast, UBS revised its price target for Rapt Therapeutics to $1.00 from $2.00, maintaining a Neutral rating. This adjustment reflects the incorporation of RAPT’s recent in-licensing agreement for RPT904/JYB1904 into UBS’s financial model. Rapt Therapeutics ended the first quarter with approximately $179 million in cash, which is expected to support the company through the Phase 2b food allergy trial outcomes for RPT904. The company plans to initiate this trial in the second half of 2025. Analysts emphasize that forthcoming data will be critical in assessing RPT904’s potential and defining its addressable market.
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