Why Is Virax Biolabs (VRAX) Stock Down 15% Today?


  • Virax Biolabs (VRAX) stock is down on Friday after rallying yesterday.
  • That makes sense, considering there was no news behind yesterday’s increase.
  • This volatility may be tied to VRAX being a penny stock.
VRAX Stock - Why Is Virax Biolabs (VRAX) Stock Down 15% Today?

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Virax Biolabs (NASDAQ:VRAX) stock is down on Friday after the biotechnology company’s shares underwent a massive rally yesterday.

That saw shares of VRAX stock close out the prior day of trading up 85.8%. With that came heavy trading as some 79.3 million shares of the stock exchanged hands. For the record, the company’s daily average trading volume is well below that at 1.3 million shares.

Investors will also keep in mind that VRAX stock rallied without any clear news yesterday. Instead, it was the extremely heavy trading that caused the stock to rise. That makes sense considering its float is only 1.33 million units.

Adding to this is the company’s penny stock status. This makes it likely that yesterday’s incredible movement was a pump by retail and day traders.

What That Means for VRAX Stock

With all of that said it makes sense that VRAX stock would give up some of the gains it saw yesterday. It’s incredibly unlikely the company’s shares could maintain that increased price without any news acting as a catalyst for it.

VRAX stock is down 15.2% as of Friday morning. That comes with some 343,000 shares of the stock traded as of this writing.

Investors will want to keep reading for all of the hottest stock market news on Friday!

We have all of the latest stock market stories that traders need to know about today! That includes everything happening with shares of Biomea Fusion (NASDAQ:BMEA) stock, Versus Systems (NASDAQ:VS) stock and Venus Concept (NASDAQ:VERO) stock today. You can catch up on all of these matters at the following links!

More Stock Market News for Friday

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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.

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