The gold sector has been in considerable focus among investors in recent days but not all gold stocks have performed well and the U.S. Gold Corp (NASDAQ:USAU) stock is certainly in that category. Over the course of the past month the stock has plummeted sharply and clocked losses of as much as 25% as a consequence.
Trading Data
On Wednesday, USAU stock went up 0.16% to $6.11 with more than 203K shares, compared to its average volume of 79K shares. The stock moved within a range of $6.02 – 6.49 after opening trade at $6.10.
Recent News
There has been no news about the company in recent days but it should be noted that back on March 16 the company had made a major announcement with regards to a registered direct offering to a solitary institutional investor.
The company announced at the time that it had inked a definitive agreement with the aforementioned institutional investors for the purchase and sale of its shares. As per the terms of the agreement, U.S. Gold Corp was going to sell as many as 625,000 shares of its common stock for $8 each. In addition to that, warrants were also going to be issued to the investors by way of which he could pick up an additional 625,000 shares for $8.60 a share. However, it is clear to see that the development has not been welcomed by investors.
Technical Data
USAU stock is below the 20-Day and 50-Day Moving averages of $6.84 and $7.24 respectively. Moreover, the stock is trading below the 200-Day moving average of $9.05.
