Why Versartis, Wayfair, and Compass Minerals Slumped Today
Friday was a quiet end to the week for Wall Street, with major benchmarks once again largely ignoring any potential threat from a possible North Korean nuclear bomb test in the immediate future. Instead, investors seem to be in a holding pattern pending the beginning of third-quarter earnings season, and they also want to see whether the Trump administration will be able to gain any momentum in getting its policy initiatives through Congress. Even though the market overall was flat, some stocks still fell sharply on downbeat news. Versartis (NASDAQ: VSAR), Wayfair (NYSE: W), and Compass Minerals (NYSE: CMP) were among the worst performers on the day. Below, we'll look more closely at these stocks to tell you why they did so poorly.
Shares of Versartis plunged nearly 88% after the small biotech disappointed investors with poor clinical trial results. The company's somavaratan drug was billed as a potential treatment for growth hormone deficiency, and Versartis had hoped that somavaratan would do at least as well as an existing treatment called Genotropin in producing improved height velocity. Instead, Versartis said that the trial established statistically significant inferiority for somavaratan in one population versus Genotropin, and that largely quashed hopes for a quick pathway toward approval. Investors will have to wait to see what Versartis' next step is, with the company expecting more guidance later this year.
Image source: Wayfair.
Source: Fool.com
Compass Minerals Intl. Stock
Based on 2 Buy predictions and 1 Sell predictions the sentiment towards Compass Minerals Intl. is rather balanced.
Based on the current price of 11.4 € the target price of 38 € shows a potential of 233.33% for Compass Minerals Intl. which would more than double the current price.
