The cash registers are ringing for investors in Vericel Corporation (NASDAQ: VCEL). The developer of expanded autologous cell therapies for the treatment of patients with serious diseases and conditions on Wednesday announced 2Q financials and the news was stunning. Revenue for the second quarter increased 32% to reach $17M – a huge lift for the company. Impressively, the $17M was actually GAAP net revenues which mean that the numbers are legit as far as accountability and transparency is concerned.

More importantly, the increase in revenue has led to a reduction in the net loss that occurred in the corresponding quarter in 2016. VCEL managed to reduce the loss from $5M, to $2.5M – a major step in bringing the company into the black and providing even more confidence for shareholders.

And those shareholders were in full force on Wednesday. The strong show of interest, no doubt spurred by the strong news in the premarket, led to a massive surge in trading. VCEL managed volume on the day of 1.1M shares, a major contrast to the average volume for the stock over the last 30 days which was 324K. In terms of actual numbers the stock opened at 3.30 and rallied all the way to a high on the day of 3.51. Although there was a slight pullback to 3.25, VCEL shook off the inevitable move of profit-takers  to rally to a close of 3.40. The strong close ensured that the stock finished up 13%.

The strong performance and an existing uptrend now mean that YTD VCEL is up 13% and climbing. The long term 200 DMA is up 21% which bodes well for investors who will be keen to capitalize on the stock’s upside potential. The consensus estimate has set a price target of 6.56 – almost double the current valuation for VCEL.