Iterum Therapeutics (NASDAQ:ITRM) stock Is Under Heavy Selling Pressure: Time To Sell?

The Iterum Therapeutics (NASDAQ:ITRM) stock continued to be in a slide yesterday and decline by 5.5% as the selloff in the stock continued. The decline in the stock on Wednesday took its losses for the past week to as much as 50%. However, not everything is gloomy for the company if the latest call from the firm H.C. Wainwright is anything to go by.

Despite the rout in the Iterum stock, the firm reiterated its buy rating and that is something that must have come as a positive for many investors.

The call from H.C. Wainwright was made this past Friday when the Iterum shares were on a downward spiral after the United States Food and Drug Administration informed that the company’s NDA had certain deficiencies with regards to its product sulopenem etzadroxil/probenecid. Ed Arce, the analyst, set the target price for the stock at around $2.50 a share, which reflected an upside of as much as 75% from the closing price of the Iterum stock on Friday. He stated that it is ‘likely’ that Iterum is going to get a complete response letter from the regulatory agency. In light of this development, investors could still consider keeping the stock in their watch lists.

Market Reaction:

On Wednesday, PRPM stock moved down 5.50% at $1.21 with more than 34.65 million shares, compared to its average volume of 13.04 million shares. The stock had moved within a range of $1.1300 – 1.3000 after opening the trade at $1.31. Over the past 52-week, the stock has been trading within a range of $0.4510 – 2.9950.