Shuttle Pharmaceuticals (SHPH) Stock Soars 70% After Its IPO

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  • Shuttle Pharmaceuticals (SHPH) stock is on the move higher once again today, surging 70%.
  • This move comes amid extreme volatility for this stock since its IPO.
  • Today, the company announced the official closing of its IPO, though shares have traded since last week.
SHPH Stock - Shuttle Pharmaceuticals (SHPH) Stock Soars 70% After Its IPO

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There have been plenty of intriguing initial public offerings (IPOs) for investors to follow this year. However, among the most bizarre IPOs of late has been that of Shuttle Pharmaceuticals (NASDAQ:SHPH). After going public at a price of $8.125 per share last week, shares of SHPH stock soared to more than $126 per share before falling back to earth. Today, despite a 70% surge at the time of writing, Shuttle Pharmaceuticals still trades around the $25 level.

This incredibly volatile debut isn’t out of the ordinary. We’ve seen some rather incredible price action among other low-float offerings in recent weeks. However, it’s clear that traders and speculators are keenly watching new offerings as closely as meme stocks, for volatility-based momentum trades right now.

Let’s dive more into what investors may want to make of this price action right now.

Is Now the Time to Consider SHPH Stock?

When a given stock starts to trade like an options contract, investors may want to consider how such a holding fits within their risk tolerance threshold. Indeed, volatility and risk are often considered to be the same thing. What goes up violently can, as we’ve seen with Shuttle Pharmaceuticals, also head downward in the same fashion.

Shuttle’s business model of providing oncology-related drugs is certainly admirable. This is a company that’s looking to advance the kind of science many investors want to see proliferate. Accordingly, there’s an altruistic side to this story that should be acknowledged.

That said, it’s pretty clear that SHPH stock is being viewed by most in the market as a trading vehicle. This small-cap stock, like many others in the market right now, appears to have both big money and retail investors playing momentum swings both ways. For those looking to take a long-term position, this environment is very difficult to time an entry point.

Accordingly, until this madness dies down, this is a stock investors will want to remain very cautious with.

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.


Article printed from InvestorPlace Media, https://investorplace.com/2022/09/shuttle-pharmaceuticals-shph-stock-soars-70-after-its-ipo/.

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