Motus GI Holdings Inc. (NASDAQ: MOTS) Attempting To Breakout On Improving Fundamentals

Motus GI Holdings Inc. (NASDAQ: MOTS) is trying to make a comeback after shedding a significant amount of market share in 2018.  The stock has bounced back from all-time lows at the back of improving fundamentals that continue to strengthen investors’ confidence. The stock is already up by 40% as the upward momentum continues to gather pace.

Motus GI Price Analysis

The recent rally has everything to do with the publication of positive trial results for the company’s Pure-Vu System, for the cleansing of poorly prepared colon in colonoscopy procedure.  Development and commercialization of the system will not be a challenge as the company’s balance sheet remains on course to receive a significant boost of about $13.5 million.

Investor’s reaction to recent development has been positive, depicted by an increase in trading volume in the market. The stock has since resorted to trading in an uptrend after shedding a significant amount of market share last year.

The stock is back to the $4 a share handle after plunging below the $3 a share mark late last year. After the recent spike, the stock is currently flirting with a key support level at the $4 a share mark.  Above the critical support level, the stock remains well positioned to continue rallying in continuation of the emerging uptrend.

Any sell-off followed by a close below the $4 a share level could open the door for short sellers to continue pushing the stock lower in continuation of the long-term downtrend. However, if recent developments are anything to go by, then Motus GI Holdings looks set to continue surging on improving fundamentals.

Upward Momentum Catalyst

Motus GI Holdings has served a groundbreaking catalyst that should continue to strengthen its stock’s sentiments in the market. The announcement that the Pure-VU System did increase the cleansing level in colonoscopy patients to 100% from a baseline of 19.1% is something that continues to excite the markets.

Trial results support the use of Pure Vu system in intra-colonoscopy cleansing. In addition to reducing costs, the new system also has the potential to eradicate a good chunk of the complications associated with other purgative-based towel preps.

“We are pleased to have the data from our European clinical feasibility study selected for publication in this prestigious, peer-reviewed journal. The data bolsters our confidence in the Pure-Vu® System’s ability to successfully cleanse the colon to a high level regardless of the adequacy of the pre-procedural prep,” commented Tim Moran, Chief Executive Officer of Motus GI.

Motus GI Holdings plans to bring to market the FDA approved device on the earliest time possible.  The medical technology company has already priced a public offering of 5 million shares of common stock at a price of $2.70. The company expects gross proceeds of about $135 million.

Net proceeds from the offering will go towards financing commercialization as well as research and development activities of the Pure Vu system.

Bottom Line

Motus GI Holding’s remains well positioned to continue its climbing the ladder in the market given the milestone achievements on the development of Pure Vu system.  The stock has already powered through a critical resistance level, affirming the emerging uptrend. The stock should emerge as a fundamentally attractive investment as it moves to commercialize its flagship system.