Lixte Biotech (NASDAQ:LIXT) stock is dropping on Wednesday but it’s not due to any negative news from the drug discovery company.
Instead, it’s the result of shares retreating after a massive rally on Wednesday. That saw shares rocket 133.1% Tuesday when the closing bell rang. This had the company’s shares reach $1.89 each when normal trading hours ended.
And that makes sense when you consider more than 49 million shares of LIXT stock traded hands yesterday. To put that number in perspective, the company’s daily average trading volume is closer to 864,000 shares.
What Was Behind the LIXT Stock Rally?
Lixte Biotech saw its shares soar on Tuesday after announcing a cancer treatment update. The company reported positive preclinical data that showed its lead clinical compound, LB-100, can kill cancer cells.
While that news kicked off the rally of LIXT stock, it’s also worth noting the company’s penny stock status. Its low stock price, combined with its market capitalization of $31.462 million, leaves it susceptible to volatility.
As such, some of yesterday’s momentum was likely due to traders jumping in and pumping up the stock on the cancer cell news. That’s why it’s not surprising that shares of LIXT stock are giving up some of yesterday’s gains this morning as traders sell the stock while it’s still up.
LIXT stock is down 29.1% as of Wednesday morning.
There’s plenty more stock market news worth diving into below!
We’ve got all of the latest stock coverage traders will want to know about on Wednesday! That includes why shares of SINTX Technologies (NASDAQ:SINT), Aurora Mobile (NASDAQ:JG), and PainReform (NASDAQ:PRFX) stock are on the move this morning. We’ve got all that news ready with the following links!
More Wednesday Stock Market News
- Why Is SINTX Technologies (SINT) Stock Down 46% Today
- Why Is Aurora Mobile (JG) Stock Up 28% Today?
- Why Is PainReform (PRFX) Stock Up 48% Today?
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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.