The market may be a bit wobbly at this point in time but there are certain stocks that have managed to buck the trend and recorded enormous gains. One such stock is Avenue Therapeutics (NASDAQ:ATXI), which managed to capture the imagination of investors in a big way yesterday and ended up with gains of as much as 106% for the day.
In this situation, it may be important for investors to work out if the stock is going to continue to deliver gains or if it is going to decline today. In fact, during the afternoon session of trading yesterday, the stock clocked gains of a staggering 150% amidst heavy trading.
There was no news about the company yesterday but a few days earlier Avenue had announced that it was going to go for a reverse stocks split. In addition to that, the company had also provided an update with regards to its product Tramadol, which is an intravenous product.
On the other hand, another factor that needs to be taken into consideration is the fact that the stock had also been in the buzz on social media and nowadays, that is often seen as a factor behind significant gains. The company is involved in the commercialization of therapies that are meant to treat diseases of the central nervous system.
The company is currently working on providing the United States Food and Drug Administration with a study protocol of Tramadol and if that happens, then Avenue could get a complete response from the agency.
On the other hand, the reverse stock split was a necessity for Avenue since it helped in keeping the stock listed on the exchange. That is being also seen as a potential factor behind the optimism among investors with regard to the stock at this point.