Earlier on in the week the Hoth Therapeutics Inc (NASDAQ:HOTH) stock had emerged as one of the major gainers but yesterday it corrected sharply and declined by as much as 31% amidst a selloff. There was no news about the company yesterday however, in this situation, it may be a good move for investors to take a look at the development that led to the rally on Monday.
Trading Data
On Tuesday, HOTH stock slumped 31.43% to $0.72 with more than 16.49 million shares, compared to its average volume of 3.88 million shares. The stock moved within a range of $0.7000 – 0.8099 after opening trade at $0.8049.
Hoth Therapeutics, Inc. Announces Pricing of $7.0 Million Underwritten Public Offering Priced At-The-Market
On April 11 the company came into focus after it made an announcement with regards to the pricing of public offering of as many as 8,235,294 shares. It should be noted that the public offering is of the underwritten nature.
The company announced that it was going to offer the shares for $0.85 each and also noted that the pricing had been done as per the at the market rules of NASDAQ. The announcement seemed to have come as a source of considerable optimism for investors and the stock soared on Monday. However, yesterday, the situation seemed to have cooled off considerable and there was a sharp correction. It now remains to be seen if the stock continues to decline or if it can manage to make a recovery.
Technical Data
HOTH stock is trading above the 20-Day and 50-Day Moving averages of $0.70 and $0.63 respectively. However, the stock is trading below the 200-Day moving average of $0.98.
