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