On another mixed session today, investors appear to be humming and hawing about how many large-cap stocks will perform. However, there’s outsized interest in some small-cap names today, with China Jo-Jo Drugstores (NASDAQ:CJJD) seeing impressive buying pressure. Today, CJJD stock surged more than 80% higher, with nearly 100 times the average daily trading volume. As of writing, CJJD stock has dipped to a smaller but still significant 64% up for the day.
This move comes as the Chinese retailer and wholesale distributor of pharmaceuticals and other healthcare products made a big announcement. The company announced today that it will be terminating a previously-proposed direct offering. This offering would have seen 2.26 million shares issued alongside 4.5 million warrants. Accordingly, investors are clearly pricing in less dilution risk with the stock, resulting in a massive move.
Now, like other penny stocks with low floats, such moves are made possible during periods when demand greatly exceeds supply. Given today’s incredible volume around CJJD stock, such a move is one that may be expected.
Additionally, this is a stock with a market capitalization of around $22 million after today’s rise. Thus, retail investors looking to play momentum trades have clearly picked up on this little-known stock, with little selling pressure signaling a downtrend is forming, at least yet.
With that said, let’s dive into which big-money investors are in this stock right now.
Top 3 Institutional Investors in CJJD Stock
As per data from Yahoo Finance, here’s the list of the top three institutional investors in Jo-Jo Drugstores.
- HHLR Advisors currently holds 403,334 shares, worth 2.2% of the company.
- Renaissance Technologies has bought 73,316 shares of CJJD stock, for a 0.4% stake in the company.
- Finally, Jane Street Capital has bet big on Jo-Jo drugstores, holding 31,451 shares, or around 1.2% of the outstanding stock.
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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.
