- Spruce Biosciences stock was trading 20% lower during premarket hours.
- It appears investors were taking profits on their positions.
- The company’s long term prospects are pretty promising.
The Spruce Biosciences Inc (NASDAQ: SPRB) stock price was trading 20% lower during the premarket session as investors took profits on their positions following Friday’s impressive rally higher.
Several factors could be driving the pullback for those wondering why the stock is pulling back today.
The first reason behind today’s decline is the normal pullback that typically follows a parabolic rally. While Friday’s rally may not seem like a parabolic one, it was a sharp rally that occurred when Spruce Biosciences stock was trading near its all-time lows.
Investors should always expect a pullback following a massive rally. We can categorise Friday’s rally in the company’s share price as massive given that its shares closed the day, trading 102.8% higher compared to the previous day. A 100% rally is a massive rally.
The other reason could be some investors taking profits on their positions after the rally leading to selling pressure, which is likely.
Those who read my previous article on the company will remember that the main driver behind Friday’s rally was a bullish rating from an analyst at Oppenheimer.
Regardless, I pointed out that the biotech company’s future seems promising as it enrols participants for a clinical trial of its Tildercefont drug candidate, which treats Classic Congenital Adrenal Hyperplasia.
Spruce Biosciences Q3 earnings were also better than expected, although investors barely reacted to the good news. Overall, the company’s prospects are pretty promising, making its shares quite attractive to long-term investors.
*This is not investment advice. Always do your due diligence before making investment decisions.
Spruce Biosciences stock price.
Spruce Biosciences stock price fell 20% to trade at $4.02, falling from Friday’s closing price of $5.03.
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