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Applied Therapeutics Stock Jumps After Positive Trial Update

Ellis HobbsAvatar
Written by Ellis Hobbs Reviewed by Jack Kellogg Fact-checked by Tim Sykes
Updated 9/27/2025, 9:13 am ET 9/27/2025, 9:13 am ET | 5 min 5 min read
Applied Therapeutics Stock Jumps After Positive Trial Update Thumbnail

Applied Therapeutics Inc.’s stocks have been trading up by 109.93 percent following FDA approvals and promising clinical trial results.

Healthcare industry expert:

Analyst sentiment – negative

Market Position & Fundamentals: Applied Therapeutics (APLT) currently occupies a precarious position in the market, reflected through its distressing financial metrics. The company reports undeniably negative profitability ratios, with an EBIT margin of -56,283.5% and a gross margin of 100%, indicating cost management issues despite achieving revenue. Net income from continuing operations is alarmingly negative at $21.3 million. The enterprise value stands at $150.8 million, while its price-to-sales ratio is an unappealing 666.74, demonstrating a sharp disparity between market value and revenue. Liquidity ratios such as the current ratio at 1.9 are relatively healthier yet overshadowed by the negative return metrics, revealing inherent inefficiencies and a burdensome debt position.

Technical Analysis & Trading Strategy: Recent weekly price actions show significant volatility with a notable spike from $0.5602 to $1.176, indicating a potential breakout pattern. The dominant trend, supported by the surge in volume, suggests bullish momentum gathering pace around the $0.56 and $1.17 levels, hinting at investor optimism or reaction to a catalyst. For an actionable trading strategy, investors should consider buying above the $1.17 resistance level on high volume with a tight stop-loss near $0.9599 to capture potential upward momentum. However, caution is advised due to the stock’s high volatility and speculative nature.

Catalysts & Outlook: Applied Therapeutics recently experienced an upswing following positive updates about the AT-007 trial, garnering investor confidence by potentially securing FDA support, hinted by analyst insights. However, shadowed by a class-action fraud settlement, historic transparency issues need consideration. The prospectus filing suggests a search for further financing, potentially affecting the stock’s dilution. Compared to industry standards, APLT exhibits instability—where biotech peers achieve progressive drug development milestones, APLT’s trajectory is marred with setbacks and financial uncertainty. Resistance at $1.45 and support at $0.46 should guide short-term trades. Overall, while the trial news injects hope, sustained financial and operational pitfalls keep sentiments cautiously optimistic but broadly negative.

Candlestick Chart

Weekly Update Sep 22 – Sep 26, 2025: On Saturday, September 27, 2025 Applied Therapeutics Inc. stock [NASDAQ: APLT] is trending up by 109.93%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Financial Overview

From a financial perspective, Applied Therapeutics Inc. (APLT) showcases notable movement driven by recent updates on its drug trials. Over the past week, APLT’s stock price experienced significant fluctuations, spurred by a promising update in clinical trials. On September 22, the stock was priced at $0.5069, with prices jumping to $1.176 by September 26, highlighting a notable upsurge. Intraday trading saw peaks of $1.32, suggesting strong investor interest post-announcement.

Analyzing the company’s key financial ratios sheds light on its current market dynamics. Despite robust gross margins of 100%, the extremely negative figures such as a -56,283.5% EBIT margin signal ongoing challenges. These numbers suggest that, while the revenue opportunities are promising, inefficient cost management may hinder overall profitability. However, robust financial strength with low debt to equity ratio of 0.15 presents a potential cushion for the company amidst this volatility.

APLT’s balance sheet reveals a significant change, with operating income and net income both reported as negative. With substantial cash flows directed towards ongoing operations, it’s clear the company is deeply invested in its R&D efforts. The recent strategic developments surrounding trial outcomes could shift this narrative if successfully navigated. Amidst this, the recent securities fraud class action seemingly taints the perception of transparency with investors, underlining the necessity of strategic maneuvering in investor communications.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

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Ellis Hobbs

Trainer and Mentor on Tim Sykes’ Trading Challenge
He teaches webinars on Tim Sykes’ Trading Challenge He treats trading like a business, not a hobby He emphasizes taking small risks — “If you get the process right, money is a forgone conclusion.”
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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

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Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”