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Here’s Why Bluejay Diagnostics (BJDX) Stock Price Soared 33.5% Premarket

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Updated 7 Dec 2021
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Bluejay Diagnostics Inc (NASDAQ: BJDX) stock price rallied 33.5% during premarket trading despite not making any announcements today as investor sentiment towards the company shifted significantly.

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The company’s shares have been in free fall since its November IPO falling from a high of $6.21 to its current lows above $2.

The IPO raised $21.6 million after selling 2.16 million units priced at a combined $10 per unit. Each unit included warrants to buy Bluejay shares at $10 in future.

However, the markets disagreed with the company’s IPO valuation since its shares opened for trading at $5.67, a 46% discount to the IPO pricing on November 10, 2021.

It appears that investors have had a change of heart about the medical diagnostics company this week since the company closed yesterday’s trading session up 10.3% and was up 21% at writing.

It is unclear whether there is a fundamental reason behind the recent rally other than buyers stepping in at the $2.36 level to push prices higher.

Bluejay Diagnostics sells non-invasive, point-of-care tests and devices, with its primary product being Allereye, a point of care test for allergic conjunctivitis.

One of the reasons for the selloff in Bluejay shares could be that it is a pre-revenue company, although some of its products are in the late stages of commercialisation.

The company intends to develop innovative and minimally invasive products that provide laboratory-quality results in “near-patient-care” situations.

Its main selling point is that its tets are affordable and can facilitate life-saving decisions for treatments by generating results within less than 25 minutes. The recent shift in investor sentiment is a welcome relief for shareholders, and many are hoping that the trend continues.

*This is not investment advice. Always do your due diligence before making investment decisions.

Bluejay Diagnostics stock price.

Tradingview chart of Bluejay diagnostics stock price 07-12-2021
Source: Tradingview

Bluejay Diagnostics stock price rallied 33.46% premarket to $3.43, rising from Monday’s closing price of $2.57.

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