ALZN Stock Alert: What Is Going on With Alzamend Neuro Today?

Shares of biotechnology company Alzamend Neuro (NASDAQ:ALZN) were up nearly 20% in pre-market trading after the company announced it will release the results of its dementia study by “mid- to late- December 2021.”

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Today’s move higher follows a 20% increase in ALZN stock over the past five trading sessions as investors pay increasing attention to the Tampa, Florida-based company.

The upward trend resulted from news of a major shareholder buying more of the company’s stock. However, year to date, Alzamend Neuro’s stock remains down more than 80%. At yesterday’s close, ALZN stock was worth only $2.40 per share, putting it deep in penny stock territory.

What Happened With ALZN Stock

The news pushing ALZN stock higher today is that the company will release by month’s end the anticipated results of the drug it is developing to help treat Alzheimer’s disease. Alzamend Neuro is developing an oral treatment for patients who have dementia that is associated with Alzheimer’s. The successful development of a pill to help combat the forgetfulness and confusion that comes with dementia caused by Alzheimer’s is viewed as a potential major medical breakthrough.

News of the soon-to-be-released results follow media reports of executives at Alzamend Neuro buying more stock in the company. Specifically, one of Alzamend Neuro’s largest shareholders bought an additional 100,000 shares of ALZN stock. Shareholder Milton C. Ault III now directly owns a total of 250,000 shares in the company. A filing with the U.S. Securities and Exchange Commission showed that Ault now owns 42.3% of Alzamend Neuro’s outstanding shares.

Why It Matters

News that Alzamend Neuro will soon release key results and that one of its biggest shareholders has increased his stake in the company are positive developments that provide a boost of confidence. Investors are clearly taking notice and sending ALZN stock higher as a result. This is good news for existing shareholders of  Alzamend Neuro who have had to endure the share price falling 80% this year.

Expectations are running high that Alzamend Neuro’s dementia study will show positive results related to the oral medication that it is developing. The stock may continue running higher until those results are made public. However, given the high expectations, ALZN stock could react negatively should the results fall flat or be worse than anticipated. The fact that a major shareholder is buying more stock is encouraging, but the share price will likely react most to the study results.

What’s Next for Alzamend Neuro?

ALZN stock’s rise looks set to continue today. While impressive, it’s important to keep in mind how far the company’s stock has fallen this year, and the fact that, even after the recent gains, it remains a penny stock. To achieve long-term share price appreciation, Alzamend Neuro will need to prove the efficacy of the medications it is developing. Until those dementia study results are known, the company’s share price is moving based on speculation.

On the date of publication, Joel Baglole 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 Publishing Guidelines.

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