Shares of Neptune Wellness (NASDAQ:NEPT) are ripping higher on Thursday. NEPT stock is up more than 120% at the time of writing, with shares now up almost 100% for the week. Is speculation at play?
We’ve seen some monster moves as of late in the stock market. At one point this week, Bed Bath & Beyond (NASDAQ:BBBY) was up 550% from its low on July 27. Other names have been on the run too.
Some of this has been from stocks being short-squeezed, like BBBY. For others, it’s simply speculative price action. However, NEPT stock could have other drivers sending it higher.
Two Catalysts Launching NEPT Stock Higher
Aside from pure speculation, there are other events surrounding Neptune Wellness.
First, Mind Medicine (NASDAQ:MNMD) is exploding higher on the day, up 45% at the time of writing. Mind Medicine is currently in a Phase 2 study using psychedelics such as LSD to help with symptoms of anxiety, ADHD, cluster headaches and major depression.
At one point during Thursday’s session, shares were up as much as 77.5%. That follows yesterday’s 10% gain. Keep in mind, the company has a 1-for-15 reverse stock split coming up on Aug. 29. So there could be a bit of a sympathy rally in NEPT underway.
Second, Neptune Wellness reported earnings earlier this week, on Monday. The company delivered a top- and bottom-line beat, while revenue grew more than 60% year-over-year. Despite the headline numbers though, shares fell after the report, falling 5.8% on Tuesday and 6.2% on Wednesday.
There may be several catalysts driving Neptune higher, but that doesn’t mean it’s a slam dunk. If anything, it looks a bit more like a speculative buying frenzy coming off of deeply oversold levels.
After all, coming into this week, NEPT stock was down about 99% from 2021. It’s down even more than that from its all-time high from mid-2019. Further, shares underwent a 1-for-35 reverse stock split in June and, as is often the case, reverse stock splits are almost never good news.
On the date of publication, Bret Kenwell 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.