IFRX Should I Buy
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InflaRx NV (IFRX) is not a strong buy at this time for a beginner investor with a long-term strategy. The stock shows bearish technical indicators, weak financial performance, and a recent downgrade in analyst ratings. While hedge funds are increasing their positions, the lack of positive news, poor financial trends, and potential dilution risks make it prudent to hold off on investing for now.
The technical indicators for IFRX are bearish. The MACD is below zero and negatively contracting, RSI is neutral at 36.334, and the moving averages indicate a bearish trend (SMA_200 > SMA_20 > SMA_5). The stock is trading near its support level (S1: 0.812), with resistance levels at 0.969 and 1.018.
Hedge funds are significantly increasing their positions, with a 425.33% increase in buying over the last quarter. Additionally, the company has delivered unexpectedly positive Phase 2a trial data for INF904, which could support future growth if further trials are successful.
The company faces potential dilution risks as further financing appears likely despite management's claims of sufficient cash. Financial performance has been weak, with significant YoY declines in revenue (-80.75%), net income (-29.73%), EPS (-40%), and gross margin (-37.83%). Analysts have downgraded the stock with a reduced price target of $2, citing valuation concerns.
In Q3 2025, InflaRx reported a sharp decline in revenue (-80.75% YoY), net income (-29.73% YoY), and EPS (-40% YoY). Gross margin also dropped significantly (-37.83% YoY), indicating deteriorating financial health.
Analysts have downgraded the stock to Market Perform from Outperform, with a reduced price target of $2 (down from $5). Despite positive Phase 2a trial data, concerns over valuation and potential dilution risks have led to a cautious outlook.
