One of the big movers in today’s rather green market is Alzamend Neuro (NASDAQ:ALZN). At the time of writing, ALZN stock has jumped more than 25% on extremely heavy volume. Of course, such a move is worth diving into.
This year, ALZN has been a highly volatile stock. This company has an absolutely incredible 52-week range of $2.04 to $33.55 per share. Currently, shares of ALZN stock have settled near the $2.80 level, which is still near the lower band of this range.
As a preclinical stage biotech, Alzamend represents the higher-risk, higher-reward upside plays in the market. Accordingly, this stock appears to have ebbed and flow, at least partly due to the sentiment of the markets. Today, investors appear to be willing to take on a bit more risk. And Alzamend is seeing the benefits of this.
The company’s work in developing novel therapies for neurodegenerative diseases and psychiatric disorders is noteworthy. Furthermore, it has a number of potential drug candidates that are awaiting trials. Currently, there appears to be a few investors who are betting heavy on ALZN stock. This seems to be driving much of the sentiment around this biotech today.
Let’s dive into what we know about why ALZN stock is gaining today.
What’s Going On With ALZN Stock?
Today, a big whale has decided to lay some more chips down on ALZN stock. According to an S-4 filing, Alzamend has seen some rather large buying activity in its stock in recent days. This buying activity has taken the form of both direct and indirect ownership of shares and options by a few individuals with ownership stakes above 10%.
Now, insiders with large stakes in a given company beefing up their position is inherently bullish. In this market, one may not necessarily be surprised to see such activity. However, typically, such buying activity signals insiders are exorbitantly bullish on the given company they’re associated with. This level of buying activity is certainly noteworthy, and it appears retail investors have begun to pick up on this trend.
Indeed, the preclinical biotech space is a higher-risk sector to invest in. However, those placing their bets on this company seem to think something’s about to come down the pike shortly.
Where this stock goes from here will be intriguing to watch. For now, I’m on the sidelines. However, this ticker has found its way onto my watchlist.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.