We recently started a series called “Penny Stock of the Day”. These ideas are geared towards traders with an extremely high risk appetite.

Our Penny Stock of the Day is chosen by screening for stocks under $5 and then applying technical analysis on the shortlisted set of penny stocks showing unusual volume. When making these trades, please make sure to pay vigilant attention to pricing moves and have a strict stop loss in place to avoid significant losses.

Penny Stock of the Day: Neumora Therapeutics, Inc. (NASDAQ: NMRA)

Today’s penny stock pick is the clinical-stage biopharmaceutical company, Neumora Therapeutics, Inc. (NASDAQ: NMRA).

Neumora Therapeutics, Inc. engages in developing therapeutic treatments for brain diseases, neuropsychiatric disorders, and neurodegenerative diseases in the United States. The company develops navacaprant (NMRA-140), a novel once-daily oral kappa opioid receptor antagonist, which is in phase 3 clinical trials for the treatment of major depressive disorder. It also develops NMRA-511 that is in phase 1 clinical trials in patients with agitation associated with dementia due to Alzheimer’s disease.

In addition, the company’s preclinical phase product includes NMRA-NMDA and NMRA-M4R for the treatment of Schizophrenia; NMRA-CK1d, a CK1d inhibitor program for the treatment of amyotrophic lateral sclerosis; NMRA-NLRP3 for the treatment of certain neurodegenerative conditions; and NMRA-GCase for the treatment of Parkinson’s disease. The company was formerly known as RBNC Therapeutics, Inc. and changed its name to Neumora Therapeutics, Inc. in October 2021.

Website:  https://www.neumoratx.com/

Latest 10-K report:  https://ir.neumoratx.com/static-files/0bf25367-28a0-403d-9ace-74ee101ccf20

Analyst Consensus: As per TipRanks Analytics, based on 9 Wall Street analyst offering 12-month price targets for NMRA in the last 3 months, the stock has an average price target of $9.14, which is nearly 282% upside from current levels.

Analysts | Source: TipRanks.com

Potential Catalysts / Reasons for the Hype:

  • Recent positive Phase 1b results for NMRA-511 showed a clinically meaningful reduction in agitation symptoms in Alzheimer’s patients with a favorable safety profile and no somnolence. This supports advancement to higher-dose studies in 2026.
  • The company has multiple catalysts in 2026, like consolidated topline data from Phase 3 KOASTAL-2 and KOASTAL-3 trials for navacaprant in MDD (Q2 2026), NMRA-215 (obesity) entering Phase 1 in H1 2026 with data by year-end, and M4 PAM franchise updates mid-2026. All these positions the company for momentum.
  • Recent reports suggest NMRA’s cash runway extends into Q3 2027. This means the company likely won’t need to do a dilutive stock offering in the next 2-3 months, removing a major fear for buyers.

On analyzing the company’s stock charts, there seem to be multiple bullish indications…

Bullish Indications

#1 Symmetrical Triangle Pattern Breakout: The daily chart shows that the stock has currently broken out a symmetrical triangle pattern, which is marked as purple lines. A symmetrical triangle pattern represents a period of consolidation before the price breaks out. This is typically formed when there is indecision in the price movements and uncertainty among the buyers and sellers. Once a breakout from the upper trend line occurs, it usually signifies the start of a new bullish trend.

NMRA – Daily Chart

#2 Bullish ADX and DI: The ADX indicator shows bullishness as the +DI line is above the -DI line, and the ADX line is currently moving higher from below the +DI and -DI lines.

#3 Price above MAs: The stock is currently above its 50-day as well as 200-day SMA, indicating that the bulls have currently gained control.

#4 MACD above Signal Line: In the daily chart, the MACD (light blue color) is currently above the MACD signal line (orange color). This indicates a possible bullish setup.

#5 Above Support Area: The weekly chart shows that the stock is currently trading above a support area, which is marked as a pink dotted line. This looks like a good area for the stock to move higher. The stock is also trading above its 50-week SMA, indicating that the bulls are gaining control.

NMRA – Weekly Chart

#6 Bullish Stoch: The %K line is above the %D line of the stochastic in the weekly chart, indicating possible bullishness.

Recommended Trade (based on the charts)

Buy Levels: If you want to get in on this trade, the ideal buy level for NMRA is above the price of $2.45.

Target Prices: Our first target is $4.50. If it closes above that level, the second target price is $6.50.

Stop Loss: To limit risk, place a stop loss at $1.20. Note that the stop loss is on a closing basis.

Our target potential upside is 84% to 165%.

For a risk of $1.25, our first target reward is $2.05, and the second target reward is $4.05. This is a nearly 1:2 and 1:3 risk-reward trade.

In other words, this trade offers 2x to 3x more potential upside than downside.

Potential Risks / Red Flags:

  1. The company has a history of net losses.

    NMRA – Consolidated Statements of Operations

  2. The company has significant competition, with Intense rivalry in MDD from established antidepressants and obesity sector dominated by GLP-1 players like Novo Nordisk and Eli Lilly.
  3. Hedge Funds Decreased Holdings by 1.3M Shares Last Quarter.

    Hedge Funds | Source: TipRanks.com

  4. The company has a history of past failures. The phase 3 KOASTAL-1 trial had failed to show that navacaprant brought statistically significant improvements in depression symptoms.
  5. Plans to increase KOASTAL trial enrollment by up to 25% could delay timelines or increase costs, though aimed at strengthening data.
  6. Despite being a loss-making company, the executives are being given significant compensation.

    NMRA – Executive Compensation

As you can see, today’s featured penny stock offers big upside potential… but it also comes with a number of risks and red flags. As always, when dealing with penny stocks, we advise caution before entering into such high-risk ventures. Remember to think before you trade… understand the risks… and if you decide to trade, stick to your stop-losses!

Happy Trading!

Trades of the Day Research Team

READ BEFORE TRADING PENNY STOCKS: The allure of penny stocks lies in their potential to deliver massive gains in a short period of time. However, in exchange for that opportunity, most penny stocks carry tremendous risk. They can be extremely volatile and are susceptible to “pump and dump” schemes and fraud.

Unlike regular stocks, the financial condition of most penny stock companies can be extremely difficult to analyze, as the majority of such stocks are traded on over-the-counter (OTC) exchanges, which are typically less transparent and less regulated than the major exchanges. In fact, in the penny stock space, it’s often easier to spot warning signs and red flags than it is to identify a sound investment. Nevertheless, we do our best to identify short-term trade opportunities in this exciting space because we know some of our readers are looking for high-risk, high-reward ideas. We just urge you to make sure you fully understand the risks before making any of these trades.

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