Supernus' 15min chart triggers RSI overbought, KDJ death cross

Based on the 15-minute chart for Supernus, the RSI (Relative Strength Index) has reached an overbought level, and the KDJ (Keltner Channel Directional Indicator) has crossed over into a death cross formation on July 10th, 2025 at 13:00. This suggests that the stock price has experienced a rapid ascent and is now above the support level provided by fundamental analysis, indicating a shift in momentum towards the downside. Consequently, there is a potential for further decreases in the stock price.

Investing.com reports that Scotiabank (TSX:BNS) has downgraded Sage Therapeutics (LON:SGE) from Sector Outperform to Sector Perform, lowering its price target to $9.20 from $12.00. The stock, currently trading at $9.17, has shown remarkable strength with a 56.75% gain over the past six months. However, InvestingPro data indicates the shares may be overbought at current levels.

The rating change follows the June 16 announcement of Supernus Pharmaceuticals' (NASDAQ:SUPN) tender offer for all outstanding Sage Therapeutics shares, valued at approximately $8.50 per share plus a $3.50 contingent value right (CVR) tied to future zuranolone commercial milestones. Supernus' offer represents a premium over Biogen's previous bid of $7.22 per share, which Sage had rejected earlier. Analysts from H.C. Wainwright, TD Cowen, and Piper Sandler have adjusted their price targets in response to the acquisition, with H.C. Wainwright maintaining a Neutral rating and a $12.00 price target, while Piper Sandler downgraded Sage to Neutral from Overweight. TD Cowen lowered its price target to $8.50, aligning with the acquisition offer, and Truist Securities raised its target to $9.00, factoring in the potential value from contingent payments.

Scotiabank's new price target of $9.20 reflects the pending $8.50 per share tender offer plus a discounted value for the $3.50 CVR, with the firm calculating Sage’s cash position at approximately $4.76 per share by the end of Q3. The acquisition is expected to close in the third quarter of 2025, with minimal regulatory hurdles anticipated.

Additionally, based on the 15-minute chart for Supernus, the RSI (Relative Strength Index) has reached an overbought level, and the KDJ (Keltner Channel Directional Indicator) has crossed over into a death cross formation on July 10th, 2025 at 13:00. This suggests that the stock price has experienced a rapid ascent and is now above the support level provided by fundamental analysis, indicating a shift in momentum towards the downside. Consequently, there is a potential for further decreases in the stock price.

References:
[1] https://uk.investing.com/news/analyst-ratings/scotiabank-downgrades-sage-therapeutics-stock-rating-to-sector-perform-93CH-4160335