CytRx Corporation (CYTR) Stock: Interesting Movement On Reverse Split


CytRx Corporation (NASDAQ: CYTR) has been an interesting stock to watch this morning. After starting the day in the red, the stock quickly spiked to the green, gaining more than 7% before falling back to the red. What’s interesting is that today is the day of a reverse split; an action that usually leads to declines in stocks. So, what’s the deal? Why is it that CYTR isn’t diving out of control today? Below, we’ll talk about what we’re seeing from the stock, interesting speculation I’ve seen on message boards this morning, and what we’ll be watching for ahead.

What We’re Seeing From CYTR

As mentioned above, for the day of a reverse split, the movement we’ve been seeing on CytRx Corporation has been interesting to say the least. In general, when a reverse split takes place, the response in the market is declines. While the stock did start the day off in the red, it spiked into the green at the opening bell, gaining more than 7% and prompting an alert from our partners at Trade Ideas before falling back down. At the moment (9:54), CYTR is trading at $2.16 per share after a loss of $0.02 per share (0.88%) thus far today.

The Reverse Split

Going into the reverse stock split makes today’s movement even more interesting. While reverse splits generally lead to declines, CYTR found its way into the green early on today. Nonetheless, the information with regard to the reverse split was relatively simple. The company announced yesterday that it would be moving forward with a 1-for-6 reverse stock split that would become effective today.

So, Why Is The Stock Not Falling Out Of Control?

This is an interesting question to answer. At the end of the day, it seems as though investors are expecting news with regard to the company’s lead candidate, aldoxorubicin. The treatment is a cytotoxic treatment that delivers a well-estabilished, anti-cancer agent known as doxorubicin to the tumor. Currently, CYTR is in the midst of late-stage trials in their attempt to push the treatment to the market.

As soon as we were alerted to the gains on CYTR, the CNA Finance team started digging to see what was happening. While the company hasn’t released any news with regard to aldoxorubicin or any of their clinical-phase compounds, we did see a few interesting things on message boards. At the end of the day, investors seem to be expecting one of two things to happen relatively soon:

  • Press Release Surrounding Aldoxorubicin – The first thing investors are looking for at the moment seems to be a press release with further information associated with aldoxorubicin. At the end of the day, investors are looking for any updated data that the company is willing to share as it continues to work toward regulatory approval.
  • Potential Acquisition – Interestingly enough, we’ve also seen several messages peppered on message boards with regard to a potential acquisition. Essentially, these messages point to the fact that aldoxorubicin may prove to be a good reason for other, larger companies in the oncology industry to work to take the company over. While there is no insinuation of a takeover actually happening at the moment, digging into aldoxorubicin and the potential value of the treatment could make CYTR a great takeover target.

Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!

What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will continue to keep a close eye on CYTR. In particular, we’re interested in following the story surrounding aldoxorubicin and excited to see the coming data and further steps with regard to the push of the treatment to the market. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

Never Miss The News Again

Do you want real-time, actionable news delivered to your inbox? Join the CNA Finance mailing list below!

Subscribe Today!

* indicates required


Please enter your comment!
Please enter your name here