Why Bionano Genomics' Shares Spiked 16.42% on Tuesday

What happened

Shares of genome analysis company Bionano Genomics (BNGO -4.19%) rose 16.42% on Tuesday. The stock closed on Monday at $2.01, then opened on Tuesday at $2.10. It rose to a high of $2.42 around noon before closing at $2.34. The stock has a 52-week low of $1.16 and a 52-week high of $6.28. So far this year, the company's shares are down more than 21%.

So what

It was a curious run-up for the stock, outside of the big day for markets in general. The only recent news released came Monday when the company said it was hosting a meeting Tuesday for customers and customer prospects curious about the company's optical genome mapping (OGM). The company specializes in OGM solutions to aid in clinical research. It also does diagnostic testing for patients who may be on the autism spectrum or have other neurodevelopmental disabilities.

There's a possibility the move was part of a short squeeze. The company has a short-squeeze score of 69.52 on Fintel, putting it at an above-average risk of a short squeeze.

The company's revenue streams consist of sales of its Saphyr system and its NxClinical software to visualize, interpret, and report genomic data, helping researchers determine chromosomal damage. It's a relatively small market, but a growing one as more companies focus on individualized gene therapies, particularly in oncology.

Now what

There's certainly long-term potential for Bionano. In the second quarter, the biotech company reported a record $6.7 million in revenue, up 73% year over year, and maintained its full-year revenue to fall between $24 million and $27 million, compared to 2021 full-year revenue of $17.9 million. However, it also had a net loss of $32.2 million in the quarter, up from the $18.8 million net loss it had in the same period in 2021.

The company has $187.3 million in cash as of the second quarter, enough to last, at its current burn rate, another six quarters. So there's a good chance the company will need financing and that may further dilute the stock, until revenue makes bigger strides.