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- Seelos (NASDAQ:SEEL) stocks jumped 56.25 per cent to US$4.75 at the close on Friday.
- Analysts had given Seelos a “Buy” rating, and upward of US$14 per share price target.
- Some 310 million Seelos stocks were traded on Friday; it gained 600 per cent in six months.
American pharmaceutical company Seelos Therapeutics Inc (NASDAQ:SEEL) left many seasoned investors on Wall Street gasping for breath on Friday with its hypersonic vertical flight, leaving its competitors miles away.
The smallcap stock surged a mind-blowing 56.25 per cent to US$4.75 at the close. It had opened the innings at 40 per cent up in the pre-market session.
So, why did that happen?
Handful market analysts had given Seelos Therapeutics a “Buy” rating, and upward of US$14 price target from its previous close of US$2.95. It didn’t take long for the stock to zoom like a rocket ship. Before most buyers could react and sink in the guide, in the blink of an eye, 310 million shares were off the menu.
The buyers’ mad dash for the stock quickly made Seelos Therapeutics a champion in Friday’s stock race.
Between September 2020 to now (six months), the stock jumped by 600 per cent.
Pic Credit: Pixabay
No ordinary feat!
But what other factors may have contributed to Seelos’ blockbuster run on Friday.
The company had recently announced the completion of the patient enrolment program for Part 1 of its Proof-of-Concept study, or SLS-002 (intranasal racemic ketamine). It is part of a research on Acute Suicidal Ideation and Behavior (ASIB) in patients with Major Depressive Disorder (MDD).
While the importance of the study may make little sense for a person with limited interest in the subject, a seasoned investor can quickly measure its significance in the company’s future growth.
This information would be key to make an informed decision whether to buy the stock. Seelos’ Friday sprint isn’t a one-off event as its pace in the past five days has been an inspiring 68 per cent.
Seelos will reveal the results of the study, which also has a 16-day treatment component, in the second quarter of 2021. The last patient will complete the study-cum-treatment program on April 1.