Penny stocks are well known for their quick profit potential. Low prices not only lend themselves to quick percentage gains, but these low-priced stocks typically represent shares of smaller companies. In many cases, there are fewer total shares outstanding, fewer shares available in public hands (the float), and they may also be less liquid. As a result, instances of unusually high levels of activity can open the door to both large moves in the value of the dollar and significant moves in percentage change.
As a trader or investor, the first step is to determine if this unusual activity is worth the risk. Why do certain penny stocks move the way they do, and should you jump into action? Today we take a closer look at one of the pre-market movers in the stock market today: Hillstream BioPharma (NASDAQ: HILS).
Why Hillstream BioPharma is moving today
First of all, who is Hillstream Biopharma and why haven’t you heard of it before? I’m sure most of you wouldn’t be surprised if you’ve never heard of it. HILS shares prior to. This is most likely because penny stocks are barely trading. On Friday, fewer than 12,000 shares were traded, which is not uncommon. Some days, penny stocks trade no more than a few thousand shares.
Hillstream Biopharma develops treatments targeting a new anti-cancer mechanism, ferroptosis. Its lead drug candidate, HSB-1216, received orphan drug designation from the FDA to treat uveal melanoma. There is also an orphan designation for HSB-1216 for small cell lung cancer. Hillstream’s other candidate, HSB-888, is in development for the treatment of solid tumors, and its active part has received FDA designations for pediatric rare diseases and orphan drugs for pediatric osteosarcoma.
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Hillstream Biopharma Stock News Today
One of the main, if not the main, catalysts for HILS stock today is its latest update. Hillstream announced a share buyback program. The company plans to buy up to $1 million of company stock. According to the press release, there are 11.4 million shares outstanding, putting HILS shares on the list of low-float stocks to watch.
If this is new to you, lower floats mean fewer shares available for public market trading. Lower supply and higher demand can open the floodgates for volatility to play its part. You can see this in HILS stock, specifically in the last quarter. Almost without warning, the stock exploded from under $1.50 to $2.70 in a single session.
“We have demonstrated strong execution and have seen significant progress in our portfolio as a result,” said Randy Milby, CEO of Hillstream. “The current market situation allows us to capture additional value for all investors through this measured buyback program. Our interests have always been and continue to be aligned with our shareholders”.
Are HILS shares a purchase?
Should you buy HILS stock today? That is something that only you can answer. Depending on your trading strategy, HILS may or may not be one to add to your list of penny stocks to watch. However, there are some pipeline developments to be aware of.
First, its two pipeline candidates have made progress with orphan designations. In the meantime, as the company outlined in a June corporate update, there are “several important milestones” it aims to achieve in the next 12 to 18 months. Of these milestones, the shortest term is for HSB-1216.
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Hillstream expects to begin GMP manufacturing and the Phase 0 study in Australia. The first half of 2023 could also become a turning point for the company. Plans are to complete research studies of new drugs and start a phase 1 clinical trial.
Given that HILS shares are floating so low, and will most likely drop even further thanks to the buyback, volatility might be something to watch out for. Is this on your penny stock list today? If so, leave a comment and let us know your opinion.
HIL Stock Chart
As you’ll see from the HILS stock chart, there haven’t been many big days apart from one in March. Meanwhile, daily trading volumes are extremely low. Even with this being the case, traders may have turned their attention to the company in the stock market today as the momentum trend of day trading continues. Thanks to this year’s stock market crash, longer-term trends take second place to daily ones.
As a result, technicals have remained a more significant focus over fundamentals, while broad sectors continue to waver. Whether or not this is the case for HILS stock today remains to be seen. However, considering the news headlines and pre-market trading activity, the HILS float could be the point of interest.
Read more about HILS shares:
- HIL Stock Profile
- HILS Stock News
- SEC Filings
- HILS Price History
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