The Facts
Yesterday, the shares of Avenue Therapeutics (ATXI) rose with 106,25%. At a certain moment during the day, the stock was even up more than 175% and due to its volatility, the stock saw multiple LULD halts!
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The momentum zone alerts pinged us that ATXI was near its highs and a possible runner. Our FREE to use stock scanner, with the different pre-defined alert types, can be here: https://app.trooper.trading/.
Why?
The question remains, on what news did that stock surge so much? On September the 22nd Avenue Therapeutics Announced a Reverse Stock Split and Provided a Regulatory Update for IV Tramadol Including Receipt of Type A Meeting Minutes from the FDA in a press release.
“NEW YORK, Sept. 22, 2022 (GLOBE NEWSWIRE) -- Avenue Therapeutics, Inc. (Nasdaq: ATXI) (“Avenue” or the “Company”), a specialty pharmaceutical company focused on the development and commercialization of therapies for the treatment of central nervous system diseases, today announced that it will effect a 1-for-15 reverse split of its common stock, which will be effective for trading purposes on the Nasdaq Capital Market as of the commencement of trading on September 23, 2022, and also provided a regulatory update related to its intravenous (“IV”) Tramadol product candidate.”
But why?
But why does a stock surge 5 days after the press release was made? To us it’s not clear why the stock started to run all of a sudden.
The stock has an average volume of 250,130 per day. Yesterday, the traded volume was 58,5 million! In other words, an increased volume of 23,400%!
We also saw it was ranked first on Stocktwits' "Watchers" list. Is the reason of the surge just ‘Meme stock behavior’? Was it just a short squeeze?
If you know, please share it with us. We’re anxious to know!
Is the reason of the surge just ‘Meme stock behavior’? Was it a short squeeze?
One successful trade on ATXI
Upfront you never know that a stock is going to rip so much. I did one trade which was a nice win according to me. Afterwards this was just a minor part of a really huge rip up, but as you know, afterwards it's easy to tell.
About Avenue Therapeutics
Avenue Therapeutics, Inc. (Nasdaq: ATXI) is a specialty pharmaceutical company focused on the development and commercialization of therapies for the treatment of central nervous system diseases. Avenue is headquartered in New York City. For more information, visit www.avenuetx.com.
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