U.S. stocks lower as investors rotate out of tech ahead of Jackson Hole
In a remarkable display of market confidence, Nexgel Inc. (NXGL) shares have surged to a 52-week high, reaching a price level of $3.56. The company, with a market capitalization of $25.64 million, has shown impressive revenue growth of over 90% in the last twelve months. According to InvestingPro analysis, analysts have set an ambitious price target of $6, suggesting potential further upside. This impressive milestone underscores the company's significant growth trajectory over the past year, with the stock witnessing a substantial 1-year change of 64.07%. While investors have shown increasing enthusiasm for Nexgel's prospects, InvestingPro data reveals both opportunities and challenges ahead, with 12 additional exclusive ProTips available to subscribers. The company's current valuation appears stretched compared to InvestingPro's Fair Value assessment, making it crucial for investors to conduct thorough due diligence before making investment decisions.
In other recent news, NEXGEL, a specialty hydrogel producer, reported record revenue of $2.94 million in Q3 2024, marking a 141% increase from the previous year. This growth was primarily driven by the acquisition of the Silly George brand and a 103% sequential increase in contract manufacturing revenue. Despite these revenue gains, NEXGEL incurred a net loss of $754,000, higher than the $552,000 loss reported in the same quarter of the previous year.
NEXGEL's gross profit margins improved significantly to 43.6%, and the company is nearing cash flow positivity. The firm also launched Histasolv in collaboration with STADA and entered a distribution agreement with Cintas (NASDAQ:CTAS) for SilverSeal. Moreover, a human trial for a hydrogel application in laser hair removal is underway, with results expected in Q4 2024.
Looking ahead, NEXGEL anticipates exceeding $3 million in revenue in Q4 2024 and expects potential revenue from the laser hair removal study in the first half of 2025. The company also plans to expand distribution in Europe and the U.S., with products expected in stores by 2025. These are among the most recent developments for NEXGEL.
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