On most days, Senti Biosciences (NASDAQ:SNTI) flies under the radar on Wall Street. Today, however, is different as SNTI stock is flying high. It’s possible that there’s a short squeeze involved.
Senti Biosciences has created a Design-Build-Test-Learn development engine to generate therapeutic gene circuits. The company’s gene circuit platform is designed to “engineer smarter medicines” in order to address fundamental disease challenges.
Senti’s pipeline includes preclinical programs related on oncology, regenerative medicine and more. It’s a fascinating little company with a market capitalization of around $100 million. Yet, Senti Biosciences hasn’t captivated the hearts and minds of financial traders recently, until today.
What’s Happening With SNTI Stock?
On a typical trading day, SNTI stock might have a trading volume of around 400,000 shares. By 10:30 a.m. Eastern today, over 17 million Senti Biosciences shares traded hands.
Clearly, there’s something special going on here. However, a deep dive into the company’s press releases page uncovered no recent news related Senti Biosciences. Scouring Yahoo Finance and StockTwits also didn’t reveal anything notable regarding the company today.
That jump in trading volume is certainly notable, though. So was the 19% surge in the SNTI stock price the morning. It’s an under-the-radar, usually-low-volume, low-priced stock. These are typical characteristics of a perfect short squeeze target.
With the Senti Biosciences share price rapidly and unexpectedly heading above $2, this has “short squeeze” written all over it. On the other hand, it would be difficult to prove this beyond a shadow of a doubt.
To reiterate, the company’s programs are all still in the preclinical phase. Therefore, Senti might not have a commercialized product available for a while. So, before jumping into the trade, it’s wise to learn as much as you can about Senti Biosciences and make an informed decision.
Whether you decide to trade SNTI stock or stay on the sidelines, it will be fascinating to find out whether the buyers can continue to move the price higher. Just remember one thing, though: In the past, some short squeeze stocks came down just as fast as they went up.
On the date of publication, David Moadel 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.
