Vaxart (NASDAQ:VXRT) stock is heading higher on Tuesday and there are a couple of things investors will want to keep in mind about the biotechnology company.
To start off with, the positive movement for VXRT stock comes at the same time that two members of its Board resigned. These members are Steven Boyd and Keith Maher. Both of them are from the Armistice hedge fund.
According to the two ex-Board members, the decision to leave Vaxart is due to Armistice only holding a 1% stake in the company. They say that the hedge funds resources are better spent focusing on other commitments, reports Seeking Alpha.
It’s also interesting to note that the departure of the hedge fund Board members takes place as retail investors look to squeeze short-sellers. Vaxart fits the description of a company that could be targeted by this type of action.
The second bit of news today that is likely behind VXRT stock gaining has to do with clinical trial results. Vaxart is expected to announce results from a Phase 1 trial sometime this week. The company is working on a vaccine for the novel coronavirus that works via tablets instead of injection.
If Vaxart reports positive results from this clinical trial, investors will likely see shares of VXRT stock soar higher. However, negative results could have the opposite effect.
VXRT stock was up 7% as of Tuesday morning.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.