AEterna Zentaris Inc. (NASDAQ: AEZS) is leading to confusion among many with gains nearly at 50%. At the same time, the company hasn’t released any news for nearly a month via SEC filings or press releases. While there is no news, there’s a reason for the gains and we believe we’ve found it. Today, we’ll talk about:
- Why AEZS is headed up;
- what we’re seeing from the stock; and
- what we’ll be watching for ahead.
Here’s Why AEZS Is Climbing
As mentioned above, AEterna Zentaris is flying early on in the market this morning, but the company hasn’t released any news that would suggest any reason for the gains. We dug quite a bit and there isn’t any news to find. However, there is a reason for the gains, and its purely technical.
Before today’s run, AEZS was trading with incredibly low volume. Only about 60,000 shares traded hands on a daily basis. The stock had a low float and has been either falling or trading flat for around 5 months. With such a low float and volume to match, it doesn’t take much to push a stock. In fact, an investor with decently sized pockets could make an investment that was meaningful enough to move the needle, yet would represent less than 5% ownership.
While we don’t know the invetment that caused the excitement, we believe that someone or multiple people found interest in the stock, making the investment that AEZS needed to move the needle. Once the needle moved in a meaningful way, traders jumped on the bandwagon, sending the stock upward.
Considering the excitement surrounding this run, it could go far further.
What We’re Seeing From AEZS
As traders continue to hop on board here, AEterna Zentaris is experiencing incredibly high volume of more than 5 million shares so far this morning. The stock is also seeing strong gains, which were first brought to our attention by our partners at Trade Ideas. At the moment (10:32), AEZS is trading at $1.93 per share after a gain of $0.63 per share or 48.64% 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 AEZS. In particular, we’re interested in following the story surrounding the company’s continued efforts to fight rare endochrine disorders. We’re also interested in following today’s run to see just how high traders push the stock. Nonetheless, we’ll keep a close eye on the news and bring it to you as it breaks!
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