Vericel Corp (NASDAQ: VCEL)
Vericel is having an incredibly rough start to the day in the market today. The movement follows large declines seen yesterday. However, I have to say that I’m not concerned. Below, we’ll talk about what we’re seeing from the stock, why, and what we’ll be watching for ahead with regard to VCEL.
What We’re Seeing From VCEL
As mentioned above, today isn’t the best of days for Vericel in the market. Unfortunately, when the opening bell rang, the stock found itself well into the red. However, since then, we’ve started to see a bit of a recovery. In fact, we’ve seen strong upward movement pushing the stock closer and closer to the green. Nonetheless, the stock is still trading relatively low. Currently (9:59), VCEL is trading at $3.15 per share after a loss of $0.35 per share (10.00%) thus far today.
Why The Stock Is Down And Why You Shouldn’t Be Concerned
The truth is that the declines that we’re seeing today didn’t happen today. In fact, our partners at Trade Ideas informed us that VCEL was in the red at the open thanks to movement we saw yesterday. Ultimately, the stock fell in a correction after climbing dramatically the day before on FDA approval.
That’s right, recently, the FDA approved MACI for the treatment of symptomatic cartilage defects in the knees of adults. This news was overwhelmingly positive. As such, when the news broke, the stock climbed by around 80%.
Nonetheless, following any big gains, we tend to see corrections that bring the stock down to a more sustainable rate before continued growth. That’s exactly what we’ve seen from Vericel, leading to recent declines on the stock.
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping an incredibly close eye on VCEL. In particular, we’re interested to see what the next steps for the company are following the recent FDA approval. We’ll keep a close eye on the news and update you as it breaks!
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