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Soleno Therapeutics Gains Momentum Following Wolfe Research Favorable Rating

Bryce TuoheyAvatar
Written by Bryce Tuohey Reviewed by Tim Sykes Fact-checked by Matt Monaco
Updated 12/14/2025, 8:11 am ET 12/14/2025, 8:11 am ET | 4 min 4 min read
Soleno Therapeutics Gains Momentum Following Wolfe Research Favorable Rating Thumbnail

Soleno Therapeutics Inc. stocks have been trading up by 5.07 percent after positive developments bolstered investor confidence.

Healthcare industry expert:

Analyst sentiment – positive

Soleno Therapeutics (SLNO) is currently facing significant challenges as indicated by its key financial metrics. The company’s profitability ratios, such as EBIT margin (-76.8) and net profit margin (-79.91), highlight ongoing losses. Despite a strong gross margin of 98.1, indicating efficiency in production, the lack of revenue growth underscores potential struggles in market penetration or product demand. The company’s financial strength, with a current ratio of 16.1 and minimal debt-to-equity ratio of 0.11, suggests robust liquidity and financial stability. However, returns on equity and assets are negative, reflecting inefficient use of resources and poor return on investments.

On the technical front, Soleno’s weekly price action shows consolidation within a narrow range, evidenced by minimal price variability. The close prices hover around $49 to $52, suggesting a lack of strong directional bias. The latest closing at $52 after a recent dip indicates a potential breakout point. Traders should monitor the $51 resistance level; a sustained move above this could lead to a bullish run. Conversely, failure to hold above $49 could signal further downside risk. The volume remains consistent, lacking any significant spikes, suggesting no imminent market-moving news affecting trading activity.

Recently, Wolfe Research’s coverage initiation with an ‘Outperform’ rating and a $75 price target provides an optimistic outlook for SLNO despite current stock weakness. The slowdown in new patient starts is identified, but analysts deem safety concerns overstated and expect positive trends. Compared to sector benchmarks, Soleno’s outlook appears promising given anticipated utilization increases. Market participants should consider the $75 target as a long-term resistance level, indicating significant upside potential if trends align with analyst expectations. Overall, Soleno Therapeutics stands at a critical juncture, with catalysts favoring upward momentum despite past quarter setbacks.

Candlestick Chart

Weekly Update Dec 08 – Dec 12, 2025: On Sunday, December 14, 2025 Soleno Therapeutics Inc. stock [NASDAQ: SLNO] is trending up by 5.07%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Financial Overview

Soleno Therapeutics has experienced a period of uncertainty with fluctuating stock prices. In a series of volatile days, the stock opened at $51.18, dipped to $49.21, and recently shot back up to $52. Such fluctuations reveal the market’s ongoing struggle to stabilize perceptions of the company’s true worth amidst varied reports.

Key financial metrics show that Soleno is operating with significant challenges. Although its gross margin is exceptionally high at 98.1%, which demonstrates strong product profitability potential, other profitability metrics paint a struggling picture. Soleno’s EBIT margin stands at -76.8%, indicative of hefty operational losses relative to earnings before interest and taxes. The corporation’s ability to manage long-term liabilities seems adequate, with a reasonably low total debt to equity ratio of 0.11, demonstrating careful leverage use amidst negative returns on assets and equity.

Financial reports highlight the company’s ability to generate operational cash flow, with $43.5M reflecting robust core business operations. A noteworthy cash inflow from stock issuance also bolsters their financial standing. However, heavy investments in short-term financial endeavors underscore their strategic emphasis on strengthening their financial base and might be expected to spur future growth.

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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Bryce Tuohey

Mentor and Trainer at StocksToTrade.com, Lead Mentor at Small Cap Rockets and To The Moon Report
Bryce’s first pattern was buying into strength in breakouts. But he noticed when they didn’t work, he took bigger losses. When the OTC market got hot, Bryce learned to dip buy the inevitable panics. He adapted his breakout strategy and now buys consolidation and trend breaks. His goal is to have better risk/reward and get an entry before multi-day listed breakouts.
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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”