It’s been another bumpy day in the stock market, with many stocks opening higher only to lose momentum this afternoon. That said, some companies are outperforming meaningfully today. Among the big winners is Avenue Therapeutics (NASDAQ:ATXI), with ATXI stock surging more than 150% in early afternoon trading.
This move comes just days after the company announced a reverse stock split and a key update on its intravenous Tramadol product candidate. Shares initially surged during Thursday’s session, before giving up most of their gains. That said, today’s move has taken ATXI to its highest level since the first quarter of this year.
Accordingly, this is a stock that’s garnering a lot of attention in social media circles the next potential momentum runner among meme stocks. Let’s dive into what investors may want to know about this micro-cap stock.
What’s Going On With ATXI Stock?
Avenue Therapeutics is an early-stage pharmaceutical company focusing on commercializing therapies aimed at central nervous system diseases. The company’s IV Tramadol product candidate is among the items in focus from investors, following some Food and Drug Administration (FDA) concerns that were highlighted in meeting minutes. Reportedly, the company is looking to submit a study protocol, which could prompt a complete response from the FDA in short order.
Some sort of decision on a key product candidate is usually a catalyst investors will like. Additionally, while many typically view reverse stock splits as a headwind, in this case, it keeps Avenue Therapeutics listed on the market. This improves the company’s potential to raise capital via the equity markets if needed.
For now, it’s clear that this $13 million market capitalization company is highly speculative. Investors looking to play this Pharma company ought to be aware of the risks. That said, in this market, momentum stocks continue to be sought out by risk-seeking investors. Thus, anything is possible in the near term with this runner.
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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.