Is Progenity Inc (NASDAQ:PROG) Stock A Good Buy After The Recent Volatility

A poor performance in the earnings report almost always leads to a selloff in a company’s stock and that is what happened with the Progenity Inc (NASDAQ:PROG) stock yesterday.

Market Stats

On Thursday, PROG stock moved down 12% to $3.10 with more than 23.03 million, compared to its average volume of 63.71 million shares. The stock has moved within a range of $3.0100 – 3.3500 after opening the trade at $3.08.

Recent News

On Wednesday, the company had been in the news after it announced its financial results.  The company suffered a quarterly loss of 38 cents a share and that was actually lower than the analysts’ estimates of 47 cents a share. In addition to that, investors also need to note that Progenity had suffered a loss of as much as $1.01 a share in the prior year period.

While it is true that the per share loss in the latest reported quarter was not a disaster, investors did not quite see it in the same way and the Progenity stock suffered from a selloff.

On Thursday, the stock fell sharply amidst a selloff and ended the day with a loss of 12%. In addition to that, it is also necessary to keep in mind that a quarter ago, it had been projected that the company was going to suffer a loss of as much as 80 cents a share. At this point, it remains to be seen if the stock can make a recovery soon.

Traders Corner

PROG stock is trading above the 200-Day and 50-Day Moving averages of $3.05 and $2.06 respectively. However, the stock is trading below the 20-Day moving average of $3.12. The stock is up 71% in the past 3-month.