Entera Bio (NASDAQ:ENTX) continues to soar higher on Friday, but investors looking to rush into the biotech company may face trading halts. So what do you need to know about halted stocks? And what is going on with ENTX stock today?
Investors should know that Entera Bio rocketed higher yesterday. Shares closed at $1.60 on March 10, and ultimately hit a high of $7.87 on Thursday, March 11. These gains came as the company released interim data from its Phase 2 clinical trial of EB613. As William White wrote for InvestorPlace, this is an osteoporosis treatment that Entera hopes can rebuild bones and improve bone density.
Although Entera is only at the halfway point of its trials, investors were excited by the preliminary news. Final data on EB613 should be available at the end of the second quarter, and ENTX stock could represent a unique biotech opportunity.
So what is going on today? And what is the deal with halted stocks?
Entera Bio is continuing its rocket ship trajectory after yesterday. Shares opened at $6.23 on Friday, and have already hit an intraday high above $10. Because of this volatile movement, investors are having to pay attention to the limit up-limit down plan from the Financial Industry Regulatory Authority (FINRA). The rule came about in 2012 to prevent trades from moving outside of specified price bands.
Essentially, reference prices for each stock are calculated and updated throughout the day. These reference prices are the mean price of eligible transactions over 5-minute periods. When stocks move a certain amount of percentage points above its reference point, a 5-minute trading halt goes into effect.
Halted Stocks: What Happened With ENTX Stock?
This morning, ENTX stock faced four different trading halts. It most recently faced a temporary pause at 10:08 a.m. Eastern. Trading resumed at 10:13 a.m. Eastern and has continued. Investors can keep tabs on halted stocks and see the full list here.
At the time of writing, ENTX stock was up more than 80% for the day and trading on heavy volume. Entera Bio sees an average daily volume of 6.3 million shares. So far today, 71 million shares have traded hands.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.