Matinas BioPharma Holdings Inc (NYSEAMERICAN: MTNB) is flying mid-day in today’s trading session. However, if you go digging for press releases or SEC filings, you’re not going to find any. Nonetheless, there is a reason for the gains. Today, we’ll talk about:
- Why MTNB is headed up;
- what we’re seeing from the stock; and
- what we’ll be watching for ahead.
MTNB Is Rocketing. Here’s Why:
As mentioned above, Matinas BioPharma is flying in mid-day today, but there’s no news that would suggest such gains. So, what’s the deal? Well, it has to do with short interest.
When it comes to short interest, the month of October wasn’t very kind to MTNB. In fact, the stock saw a short interest increase of around 5%. This set the stage for the action that we’re seeing on the stock today.
While there was no real reason for the original gain, the stock traded with a low float and short interest was on the rise. So, it didn’t take much to move the needle, and once it started, it looks like it started to lead to a short squeeze. As the price of MTNB finds its way upward, shorts are losing more and more money. So, chances are that the stock is gaining as the growth in short interest reverses.
It’s worth mentioning that short squeezes have the potential to lead to dramatic gains. 20% is just the tip of the iceberg in many cases. So, this thing could run if traders continue to push!
What We’re Seeing From The Stock
With no news out of Matinas BioPharma, there’s no telling what can happen here. Chances are that the stock will pull back slightly from current levels before running yet again. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (11:50), MTNB is trading at $0.82 per share after a gain of $0.16 per share or 24.08% 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 MTNB. In particular, we’re interested in seeing just how high traders push the stock as the squeeze continues. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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