The Oncorus Inc (NASDAQ: ONCR) stock price surged 326.4% despite the lack of news releases in what could be another meme stock rally in the making. The company’s last announcement was on June 1, 2023, when it revealed that it was letting go of most of its employees and could be headed for liquidation.
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At the time, the company had laid off its Chief Executive Officer, Theodore (Ted) Ashburn, M.D., PhD, its Chief Operating Officer and Chief of Staff, Stephen W. Harbin, and its Chief Medical Officer, John M. Goldberg, M.D.
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Since then, there have been no further announcements from the company up to date where we have gotten such a massive rally in its share price. The company’s board had approved the letting go of about 55 employees, representing all of Oncorus’ workforce. The layoffs were to be completed by August.
Therefore, there is no reason why Oncorus shares should be rallying higher now. The only reason behind the rally could be that retail investors are keen to push ONCR share price higher to squeeze out institutional inventors who tend to short such stocks.
As the price of Oncorus shares rallies higher, short sellers will be forced to buy back the shares at higher prices to cover their short positions, which creates a vicious upward spiral in the ONCR stock price.
Over 37.72 million Oncorus shares had changed hands at writing, indicating significant retail investor interest in the company and its shares. Will the rally continue, or will it fizzle out if the bears come out in large numbers and attempt to lower prices?
The short answer is that we do not know for sure. However, the retail traders will likely have their way in the short term, while the institutional traders will likely win over the long term. For now, the retail investors are in control and are pushing ONCR prices higher.
Still, the institutions will likely win over the long term, given the company’s dire prospects. However, Oncorus could seize the opportunity and use it to raise capital to fund its operations and keep it afloat.
*This is not investment advice.
Oncorus stock price.
The Oncorus stock price surged 326.42% to trade at $0.3309, from Thursday’s closing price of $0.0776.
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