A Major Squeeze Is Brewing in PaxMedica (PXMD) Stock

  • PaxMedica (PXMD) is a hot stock with short-squeeze potential.
  • The company’s shares were listed among those most likely to see a short squeeze.
  • This follows its public debut a couple of months ago.
A pile of brightly colored pills in varying sizes and shapes representing PXMD stock.

Source: Shutterstock

PaxMedica (NASDAQ:PXMD) stock could be preparing for a short squeeze with recent signs showing potential for it to surge in price.

Let’s start off with the basics, which include the company completing its initial public offering, or IPO, near the end of August. Since then, shares of PXMD stock have largely seen negative movement.

The latest update from PaxMedica came out at the end of September. During that update, the company said it intends to use funds from the IPO to fuel its research into treatments for intractable neurologic symptoms, such as autism spectrum disorder.

Evidence for a Short Squeeze

Fintel, a provider of advanced research tools for investor data, recently highlighted PXMD stock as a potential for a short squeeze. In fact, the company listed PaxMedica stock as its most likely candidate to undergo a short squeeze in its Short Squeeze Leaderboard this week.

Fintel takes into account several factors when ranking stocks for its leaderboard. That includes relative short interest, borrow fee rates, trading volume and more. With these considerations in mind, investors will want to keep an eye on PXMD stock this week.

Shares of PXMD stock have yet to see heavy trading with some 300,000 shares on the move. That’s weak compared to its daily average trading volume of about 4 million shares. Investors will also note the stock is down 11.2% as of Monday afternoon.

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On the date of publication, William White 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/2022/10/a-major-squeeze-is-brewing-in-paxmedica-pxmd-stock/.

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