Oragenics Inc (NYSEAMERICAN: OGEN) is having a rough start to the trading session, following up on the declines that we saw on the stock yesterday. While there is no news out, the reason for the declines is easy to spot. The market moves in waves and after big gains, the stock is correcting a bit. The big question is whether or not you should buy the dip. Today, we’ll talk about:
- Why we’ve seen recent gains from OGEN;
- whether or not this is a dip worth buying;
- what we’re seeing from the stock; and
- what we’ll be watching for ahead.
Why OGEN Saw Recent Gains
While Oragenics is down today, following up on larger declines yesterday, the reality is that the stock actually experienced pretty strong gains recently. The reason for the gains has to do with a couple of factors:
First and foremost, OGEN recently announced positive data from a preclinical candidate known as OG716. The company said that the data suggest that the in vitro potency of the treatment is equal to or superior to the current standard of care.
Shortly after announcing the data, the company announced that it would be presenting at The MicroCap Conference. The presentation would focus on this data as well as a corporate overview.
At the time of these announcements, OGEN was trading with a low float and relatively high short interest. So, with the positive news, a short squeeze commenced, leading to massive gains in the value of the stock.
The Dip And Whether Or Not You Should Consider Buying It
For the past couple of sessions, the movement in the value of Oragenics hasn’t been quite as positive. Yesterday, the stock saw pretty heavy declines and today, in the pre-market hours, it is seeing more of a drop. However, if you take a look at the chart, you’ll see that OGEN is reaching a key support level. I believe that once the value of the stock falls to between $1.38 per share and $1.40 per share, the floor will be set and the stock will see further gains. So, in my opinion, buying the dip would likely be a strong move.
What We’re Seeing From The Stock
As mentioned above, Oragenics isn’t off to the best of starts in the market this morning. The stock continues to come off of recent highs, clocking declines in the pre-market as a result. As is normally the case, our partners at Trade Ideas were the first to alert us to the movement. At the moment (6:34), OGEN is trading at $1.42 per share after a loss of $0.09 per share or 5.96% 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 OGEN. In particular, we’re interested in seeing what the run is like once the stock reaches support as well as following the company through the continued development of 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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