Summary
• Pasithea Therapeutics Corp. (KTTA) stock rose 14.2% to $1.29 following a $60 million public offering announcement.
• The offering consisted of 80 million shares at an effective price of $0.75 to advance clinical-stage drug PAS-004.
• Analysts have initiated coverage with a “Buy” rating and a price target of $3, contributing to increased trading interest.
Pasithea Therapeutics Corp. (KTTA) is making notable gains in intraday trading, with the stock rising 14.2% to a current price of $1.29. This move reflects a significant uptick compared to its previous close, amid no clear catalyst driving today’s price action.
Recent Offering Fuels Price Increase
The upward momentum can be traced back to the company’s announcement on December 2 regarding the successful closing of its $60 million public offering of common stock. The offering consisted of 80 million shares at an effective price of $0.75 per share. Funded by healthcare-focused investors, this development is crucial as it provides Pasithea with capital to advance its clinical-stage drug, PAS-004, targeted at neurofibromatosis type 1-associated plexiform neurofibromas.
Despite the recent price surge, the stock still stands down significantly from its past performance, evidenced by its yearly performance being off by nearly 63%. The company is aiming for strategic use of the new capital, aligning with its commitment to advancing biotechnology solutions in medicine.
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Performance Metrics and Market Sentiment
Currently, KTTA stock has an average volume of approximately 647,116 over the last 10 days, while its 3-month average volume stands at 6,623,160. The price rise reflects heightened interest among traders, as indicated by the stock’s RSI of 59.49, suggesting the stock is nearing overbought territory.
Analysts are optimistic, with a recent initiation of coverage by HC Wainwright & Co., transitioning the rating from Initiates to Buy, coupled with a price target of $3. This positive outlook may be influencing current trading activity.
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Technical Overview
Pasithea’s stock has seen volatility levels characterized by an ATR of 0.17, indicating moderate movements, while a 60.8% increase in monthly performance showcases promising short-term recovery potential. The SMA values indicate the stock is showing positive momentum, particularly with the recent rise eclipsing the 20-day and 50-day moving averages, denoting increased buying interest.
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Regulatory Filings and Recent Disclosures
On December 2, the company also filed an 8-K related to the public offering, which outlines the terms and conditions surrounding the issuance of new shares. This provides transparency and informs shareholders of the company’s financial strategies and positioning for future growth.
With the recent surge in price and analyst optimism, it appears Pasithea Therapeutics is positioning itself for a potentially transformative phase in its operational strategy.