The initial public offering (IPO) season continued yesterday as an innovator in the field of digital healthcare technology began trading. California-based HeartBeam (NASDAQ:BEAT) trades under an appropriate symbol, as much of its work is concerned with the human heartbeat, specifically detecting signs of a potential heart attack or other symptoms of cardiovascular disease. The HeartBeam IPO dropped yesterday. And despite the considerable anticipation surrounding it, BEAT stock has experienced a fairly turbulent start.
For a company built around keeping hearts healthy, HeartBeam has done plenty to send heart rates racing across Wall Street today. As its stock falters on take off, investors have plenty of questions.
What’s Been Happening Since the HeartBeam IPO
BEAT stock secured the top spot on this morning’s list of top gaining stocks, shooting up over 176% in its debut. The HeartBeam IPO consisted of 2,750,000 units, comprised of both common stock and warrants to purchase additional shares at $6, the offering’s per-unit price. The exercise period for each warrant is up to five years following its date of issue. Underwriters were granted a 30-day option to purchase an additional 412,500 shares of its common stock and/or warrants at the IPO price. Additionally, the company anticipated raising $16.5 million from the IPO.
Shares began this morning by shooting up again, but as of this writing, they’ve taken a dip and are currently in the red by almost 2%. Since yesterday, the up and down patterns that we’ve seen from BEAT stock has it down by more than 3% since the debut. While the turbulence seems to be continuing today, it’s still early in the day. There’s still time for the stock to stabilize. The question is, will it? And if so, how soon?
Why It Matters
This debut hasn’t been ideal, but that doesn’t mean HeartBeam isn’t a company worth watching. On the contrary, it has plenty of potential. While its product has not been cleared by the FDA (Food and Drug Administration) and is not available in the United States, this is likely temporary.
Cardiovascular disease remains the most common cause of death across the globe. As obesity rates rise, this only stands to get worse. Human reliance on technology for medical needs has also increased. All this serves to highlight the potential market for companies pioneering technology in the cardiovascular disease detection space. And that is exactly what HeartBeam is doing. Its products include a smartphone application, cloud-based technology, a wearable device and a portal for trusted physicians. If this system catches fire in the medical world — and it easily could — BEAT stock will be poised to take off.
What It Means
HeartBeam is still a relatively new company, founded in 2015. It makes sense that its stock might have trouble taking off, as its product is still yet to be FDA-approved. That said, there’s no reason to believe the Heartbeam IPO couldn’t easily lead to BEAT becoming a breakout stock when the company obtains the necessary regulatory clearance.
Heart disease detection is an increasingly important medical need and one that technology can certainly help improve. Many people tend to second-guess heart attack symptoms, leading to the problem becoming worse when they avoid seeking care. HeartBeam has the type of technology that could save millions of lives, and it seems as though the company is making good process in getting it to market.
BEAT stock is absolutely worth watching as HeartBeam takes steps toward releasing its product.
On the date of publication, Samuel O’Brient 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.
