InspireMD Inc (NYSEAMERICAN: NSPR) is having an overwhelmingly strong start to the trading session this moring. However, if you’re looking for a press release or an SEC filing, you’re going to be looking for quite a while. There’s nothing out this morning.
In fact, the company hasn’t issued any news in some time. So, what’s the deal? We believe that we’ve found the reason for the gains. Today, we’ll talk about:
- Why NSPR stock is climbing;
- what we’re seeing from the stock; and
- what we’ll be watching for ahead.
Why NSPR Stock Is Running For The Top
As mentioned above, InspireMD is having a great start to the trading session this morning, with double digit gains in the premarket. However, with no news out, many are wondering why the stock is running for the top. Without news, anything I say here is speculation, but here’s how I see it:
I believe that NSPR is making a sympathy run at the moment. Take a look at ARCA Biopharma (NASDAQ: ABIO). The stock had an incredible run in the market yesterday and is gaining nearly in multiples this morning.
Now, take a look at price structure before the run. Also, dig into the share structure. Now, flip back to NSPR and do the same thing. Chances are that you’re seeing some serious similarities.
Another key similarity is the sector in which these companies work. Both ABIO and NSPR are working to develop treatments in the cardiology space.
Considering this, I believe that these gains are nothing more than a sympathy run. It’s actually quite common. One stock makes an incredible run for the top and we start to see other stocks with similar price structures, share structures, and products or candidates follow the runner to the top. That seems to be the case for NSPR today.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is to pay attention to correlated assets. This is why. At the end of the day, when one asset runs, we tend to see other correlated assets climb, as is the case today with InspireMD following ARCA Biopharma to the top.
As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:!6), NSPR is trading at $6.27 per share after a gain of $1.20 per share or 23.67% 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 NSPR. In particular, we’re interested in seeing just how high traders push the stock. Moreover, we’re watching as the company continues to work to develop its pipeline in the cardiology space. Nonetheless, we’ll keep a close eye on the story and bring the news to you as it breaks!
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