T2 Biosystems (NASDAQ:TTOO) stock is rallying hard on Thursday, with shares up more than 60% so far in the session. At the session high, TTOO stock was up about 85%.
The stock has been riding a strong winning streak as it works on its fourth straight daily rally. At the start of the week on Monday, it was trading at 12 cents, and now TTOO stock has rocketed up to 39 cents.
In all, the stock has more than tripled this week, with shares up 236% so far. That said, investors should take notice of a few things.
Even with the massive rally this week, the stock still sports a low market capitalization of just $115 million. While that would be a big company by some measures, it’s small when it comes to the U.S. stock market. Additionally, the stock still trades with a low share price, currently trading near 40 cents.
Back in February, the stock suffered a painful two-day 40% decline that took it below the $1 a share mark. In fact, that was part of a larger two-week, 60% skid that decimated the stock price. In doing so, the drop below the $1 mark took TTOO stock out of compliance with the Nasdaq.
Recently, the company received an extension for its stock price to further recover, potentially allowing it to avoid delisting from the Nasdaq. The company now has until Nov. 20 to bring its stock price into compliance.
Specifically, “T2 will need to sustain a share price of $1 as well as a market capitalization of $35 million for 10 straight trading days in order to remain listed on the index.”
Who Are the Largest Shareholders of TTOO Stock?
Some have started to ask if T2 Biosystems might be the next meme stock, and given its rise this week, that’s a fair question to ask.
The stock has a short interest of about 7.7%, which is not all that high — certainly not high enough to be the main catalyst of a significant rally. However, that doesn’t mean it can’t continue to find bullish momentum.
As previously mentioned, it already has a market cap north of $35 million. So if buyers aren’t able to take the share price back above $1 on their own, then the company could always resort to a reverse stock split in order to bring it back within compliance.
In July, GSA Capital Partners acquired 799,572 shares of TTOO stock for about 11.5 cents apiece. With shares currently trading near 40 cents, that’s a pretty good short-term return. The additional shares brought GSA’s total position to “4,599,059 shares, representing 1.50% of the company’s total shares and 0.05% of the firm’s portfolio.”
That makes GSA a significantly larger shareholder than the second-largest stakeholder, which is Sabby Management, LLC, with almost 750,000 shares. Hudson Bay Capital Management, CVI Holdings and Anson Funds Management round out the top five, with 651,300 shares, 549,542 shares and 525,038 shares, respectively.
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On the date of publication, Bret Kenwell 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.
