Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Endocyte (NASDAQ:ECYT), a biopharmaceutical company developing treatments for oncological and inflammatory diseases, jumped as much as 10% after receiving an analyst upgrade.
So what: Endocyte shares rallied by double digits after brokerage firm R.W. Baird upped its rating on the company to "outperform" from "neutral" and boosted its price target to $13 from $9. Specific to the upgrade, Baird noted that Endocyte's primary early-stage pipeline is further along than it had previously thought and figures it could boast some promising drug candidates.
Now what: I've said it before and I'll say it again -- don't get caught up in the hoopla often involved with one-day price swings caused by analyst upgrades and downgrades, as they rarely have any bearing on your long-term investing thesis. As for Endocyte, a lot of its true success is riding on the outcome of a late-stage trial in the U.S. and a European Medicines Agency decision on Vintafolide for ovarian cancer. The drug is actually licensed to Merck (NYSE:MRK), but the royalties could go a long way to establishing Endocyte as a reputable -- and potentially profitable -- biopharmaceutical company.
Craving more input? Start by adding Endocyte to your free and personalized watchlist so you can keep up on the latest news with the company.
Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.
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