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Here’s Why the Sunshine Biopharma (SBFM) Stock Soared 290% Despite No News

Simon Mugo trader
Updated 9 Mar 2022

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Key points:

  • Sunshine Biopharma shares soared 290% amid massive demand.
  • It was unclear where the demand was coming from; it could be retail traders.
  • The stock recently debuted on the Nasdaq and has minimal price information.

The Sunshine Biopharma, Inc. (NASDAQ: SBFM) stock price soared 290% despite the company not making any significant announcements today. Instead, the rally was primarily attributed to the significant volume of SBFM shares traded in today’s premarket session.

Data available at writing indicated that over 6.95 million shares had changed hands amid significant interest from investors in the company’s shares. It was unclear precisely what triggered the rally, but it could be a flood of retail investors.

Also read: What to Do During a Market Selloff.

The last significant announcement from Sunshine Biopharma was an agreement signed with the University of Arizona to develop novel PLpro inhibitors discovered in partnership with researchers from the University of Illinois Chicago.

The deal was announced in late February, with SBFM focusing on determining the pharmacokinetics and in vivo safety and dosage properties of the inhibitors, which the universities own.

The tests will be conducted on mice, after which the successful molecules will then be tested on human beings.

The biotech company uplisted to Nasdaq on February 15, 2022, after a public offering of 1.88 million shares that raised $8 million. The firm also issued warrants to purchase additional shares by the investors who participated in the capital raise.

The new shares were sold for $4.25 per price but debuted on the Nasdaq trading at a much lower price of $2.74.

Today’s rally in SBFM stock saw its share trade above $5, and they were trading at 44.30 at writing.

There is little available information on Sunshine Biopharma for now. Therefore, it will take time before we can build a strong base of price movements to perform technical analysis on SBFM shares comfortably.

The company’s shares are currently driven by investor sentiment and news announcements.

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

Sunshine Biopharma stock price.

Sunshine Biopharma stock price 09-03-2022
Source: Tradingview

Sunshine Biopharma’s stock price surged 290.1% to trade at $5.93, rising from Tuesday’s closing price of $1.52.

Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading