Why Is Rubius Therapeutics (RUBY) Stock Down 16% Today?

Advertisement

  • Rubius Therapeutics (RUBY) stock is dropping alongside a delisting notice.
  • The company’s shares trade below the Nasdaq’s minimum bid price.
  • The company intends to request a hearing to delay its delisting.
RUBY Stock - Why Is Rubius Therapeutics (RUBY) Stock Down 16% Today?

Source: arfa adam / Shutterstock.com

Rubius Therapeutics (NASDAQ:RUBY) stock is falling hard on Tuesday after the biotechnology company received a Nasdaq delisting notice.

According to a filing with the U.S. Securities and Exchange Commission (SEC), the company doesn’t meet the requirements to list on the Nasdaq exchange. That’s due to shares of RUBY stock trading below the $1 minimum bid price for too long.

That warning from the exchange would see shares of RUBY stock delisted on Feb. 15, 2023. However, Rubius Therapeutics intends to seek a hearing with the Nasdaq Hearings Panel. This will have it laying out plans for how it will regain compliance.

Investors will note that this isn’t the first delisting notice for RUBY stock. The company’s prior warning came back on July 27, 2022. That gave it until Jan. 23, 2023, to regain compliance with the Nasdaq’s listing rules. It failed to achieve this.

What This Means for RUBY Stock

Rubius Therapeutics needs to convince the Nasdaq Hearings Panel that it can get shares back above the $1 trading minimum. It might choose a reverse stock split to bump up its share price. The company could also switch to the OTC Markets exchange if it can’t regain Nasdaq compliance.

RUBY stock has seen some 830,000 shares change hands as of this writing. That’s quickly gaining on its daily average trading volume of about 1.3 million shares. The stock is also down 16% as of Tuesday morning.

Investors looking for all of the latest stock market news will want to keep reading!

We’ve got all of the hottest stock market coverage traders need to know about on Tuesday! That includes why shares of Bed Bath & Beyond (NASDAQ:BBBY), Oak Street Health (NYSE:OSH), and Vaccinex (NASDAQ:VCNX) stock are moving today. You can read up on that news at the links below!

More Tuesday Stock Market News

On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.

Read More:Penny Stocks — How to Profit Without Getting Scammed

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/2023/02/why-is-rubius-therapeutics-ruby-stock-down-16-today/.

©2024 InvestorPlace Media, LLC