ADC Therapeutics(ADCT) Shares Soar 8.17% on $100M PIPE Financing

ADC Therapeutics(ADCT) shares rose to their highest level since July 2024 today, with an intraday gain of 8.17%.

The strategy of buying ADCT shares after they reached a recent high and holding for 1 week showed poor performance over the past 5 years. The cumulative return was -58.2%, significantly underperforming the market. This indicates that relying on recent highs and short holding periods is not a reliable strategy for ADCT or similar stocks.

ADC Therapeutics has recently secured $100 million in private investment in public equity (PIPE) financing. This capital is intended to advance the clinical development and commercialization of ZYNLONTA, ADC Therapeutics' CD19-directed ADC, which has received accelerated approval by the FDA and conditional approval from the European authorities. This significant funding injection is expected to bolster the company's financial position and accelerate its research and development efforts, potentially driving future growth and innovation.

Guggenheim has raised the firm's price target on ADC Therapeutics to $10 from $7, maintaining a Buy rating on the shares. This upgrade reflects the firm's confidence in the company's prospects and its ability to deliver on its strategic initiatives. The increased price target suggests that Guggenheim believes ADC Therapeutics has strong potential for growth, which could attract more investors and further boost the stock price.