vTv Therapeutics Inc (NASDAQ: VTVT) is having an incredibly strong start to the trading session this morning. However, if you go looking for a press release or SEC filing issued by the company in the pre-market, you’re not going to find anything. Nonetheless, there is a very real reason for the gains. Today, we’ll talk about:
- Why VTVT is haeaded up;
- what we’re seeing from the stock; and
- what we’ll be watching for ahead.
Why VTVT Is Headed Up
As mentioned above, vTv Therapeutics is having a great start to the trading session in the pre-market hours, but no news has been released. In my view, the gains are happening for a few reasons:
First and foremost, in a recent SEC filing, the company disclosed that it has received a pretty large investment. In the filing, the company said that MacAndrews & Forbes Group, a group led by one of the world’s leading investors, Ronald Perelman, purchased an additional 1,879,699 Class A common shares.
In the filing, the company said that the purchase was the result of an agreement that took place on July 30, 2018. Under the terms of the agreement, MacAndrews & Forbes group would purchase the shares at $1.33 each, bringing its total holding in VTVT to about 36 million shares. The total value of the transaction came to approximately $2.5 million.
With the news of the investment in the company, VTVT went on a run for the top before correcting a bit in the market yesterday. However, the old saying goes, “Smart money follows big money.” Now that the stock has come off of highs, investors are excited yet again, looking to get in on what one of the world’s most successful investors believes will be big gains.
What We’re Seeing From The Stock
One of the first lessons that we learn is that the news leads to moves in the market. In the case of vTv Therapeutics, although the news is a couple of sessions old, it was overwhelmingly positive. After all, when big-time investors pay attention to relatively small-time stocks, it’s something to take note of. So, it comes as no surprise to see that investors are excited and pushing the stock toward the top. As is almost always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:05), VTVT is trading at $3.72 per share after a gain of $1.06 per share or 39.85% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on VTVT. In particular, we’re interested in following the company’s continued efforts to develop its robust pipeline. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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