Please ensure Javascript is enabled for purposes of website accessibility

Why ChromaDex Trounced the Market on Tuesday

By Eric Volkman - Mar 16, 2021 at 6:48PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Another investment bank lifts its price target on the company's stock.

What happened

ChromaDex (CDXC -5.46%) was a hit on a slightly downbeat Tuesday for the broader market. Its shares raced nearly 10% higher on a price target increase from an analyst. 

So what

New York-based investment bank H.C. Wainwright lifted its price target on the stock Tuesday. Actually, that's an understatement; that level was shot into the sky, to $16 per share from the previous $7. The company maintains its buy recommendation on ChromaDex.

A medical professional holding dollar sign paperweight.

Image source: Getty Images.

H.C. Wainwright's upgrade is not the only one in recent days. Last week, Ladenburg Thalmann analyst Jeffrey Cohen cranked his target price on the shares up to $12 from the preceding $8.50, and Brian Nagel from the influential Oppenheimer nearly doubled his from $9 to $17. Both prognosticators have the equivalent of a buy recommendation on the stock.

Two major recent factors are behind the sunnier outlooks. First, ChromaDex reported fourth quarter results that, while basically in line with analyst expectations, showed a considerably narrower EBITDA loss compared to the year-ago quarter. Second, and perhaps more important, the company announced that it signed a supply deal with Walmart for the monster retailer to carry its flagship Tru Niagen dietary supplement in 3,000 of its stores.

Now what

ChromaDex has an active product pipeline and a modest chemicals business, but for now its fortunes are strongly tied to Tru Niagen. So at the moment it's a fairly limited healthcare business. Potential investors should keep an eye on how that pipeline develops.

 

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

ChromaDex Corporation Stock Quote
ChromaDex Corporation
CDXC
$1.73 (-5.46%) $0.10
Wal-Mart Stores, Inc. Stock Quote
Wal-Mart Stores, Inc.
WMT
$122.43 (-6.79%) $-8.92
Oppenheimer Holdings Inc. Stock Quote
Oppenheimer Holdings Inc.
OPY
$32.89 (-2.55%) $0.86

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
349%
 
S&P 500 Returns
122%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/19/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.