Ocugen Soars After Offering As Analyst Sees More Vaccine, Social Media Attention

Shares of Ocugen (OCGN) have more than doubled on Monday after the company announced that it has entered into definitive agreements for the sale of an aggregate of 3M shares of its common stock at a purchase price of $7.65 per share in a registered direct offering. Commenting on the stock's recent outperformance, Cantor Fitzgerald analyst Kristen Kluska said she believes the company is not only starting to receive more attention for its COVID-19 vaccine, COVAXIN, but is also receiving a "significant amount of social media attention," which could explain recent volatility in the shares.

REGISTERED DIRECT OFFERING: Ocugen announced that it has entered into definitive agreements with healthcare-focused institutional investors for the sale of an aggregate of 3M shares of its common stock at a purchase price of $7.65 per share in a registered direct offering.

Noting that it's offering of 3M shares was priced at $7.65 apiece in a registered direct offering, which is 46% higher than the closing price on Friday, Bloomberg pointed out that the premium is the "biggest for an additional equity raise in the U.S. over the past 12 months," according to data compiled by the publication. Ocugen almost tripled last week "after capitalizing on the recent frenzy for its stock among Reddit-following traders," Bloomberg added.

MORE ATTENTION: Commenting on the stock's recent outperformance, Cantor Fitzgerald analyst Kristen Kluska said she believes it may be due to the company starting to receive more attention for its COVID-19 vaccine, COVAXIN. The analyst, who noted that Ocugen is set to receive 45% of any sales in the U.S. if COVAXIN is approved in this market, recognized that institutional investors are "paying close attention" to COVID-19 vaccines in development. Nonetheless, the analyst also believes Ocugen is now receiving a "significant amount of social media attention" that could also be driving recent volatility in the stock. Though Kluska thinks her estimates updated last week to include COVAXIN are "conservative," she sees no need to revise her estimates and price target based on the recent volatility. The analyst keeps an Overweight rating and $4 price target on Ocugen shares.

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