Penny stocks are well-known for their quick gain potential. Not only do cheap prices lend themselves to swift percentage gains, but these low-priced stocks generally represent shares of smaller companies. In many cases, there are fewer total shares outstanding, fewer shares available in public hands (the float), and they can also be less liquid. As a result, instances of unusually higher activity levels can open the door for both big moves in dollar value and significant moves in percentage change.
As traders or investors, the first step is determining if this unusual activity is worth taking a risk on. Why are certain penny stocks moving the way they are, and should you jump into the action? Today we look more closely at one of the premarket movers in the stock market today: Hillstream BioPharma (NASDAQ: HILS).
Why Hillstream BioPharma Is Moving Today
First, who is Hillstream Biopharma, and why haven’t you heard of it before? I’m sure most wouldn’t be surprised to have never heard of HILS stock before. That’s most likely because the penny stock barely trades. On Friday, fewer than 12,000 shares exchanged hands, which isn’t uncommon. Some days the penny stock doesn’t trade more than a few thousand shares.
Hillstream Biopharma develops treatments targeting a new anti-cancer mechanism, ferroptosis. Its lead drug candidate, HSB-1216, was granted Orphan Drug Designation by the FDA to treat uveal melanoma. There’s also an Orphan designation for HSB-1216 for small-cell lung cancer. Hillstream’s other candidate, HSB-888, is in development for treating solid tumors, and its active portion has received Rare Pediatric Disease and Orphan Drug designations from the FDA for pediatric osteosarcoma.
Hillstream Biopharma Stock News Today
One of if not the main catalysts for HILS stock today is its latest update. Hillstream announced a share repurchase program. The company plans on buying up to $1 million of company stock. According to the press release, there are 11.4 million shares outstanding, which puts HILS stock on the list of low float stocks to watch.
If this is a new topic for you, lower floats mean fewer shares available to trade in the public market. Lower supply and higher demand can open the flood gates for volatility to play its part. You can see this from HILS stock, specifically last quarter. Almost without warning, shares exploded from under $1.50 to $2.70 in a single session.
“We have demonstrated strong execution and, as a result, have seen significant advancement of our pipeline,” said Randy Milby, Hillstream’s Chief Executive Officer. “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.”
Is HILS Stock A Buy?
Should you buy shares of HILS stock today? That’s something 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 a few pipeline developments to keep in mind.
First, both of its pipeline candidates have made progress with Orphan Designations. Meanwhile, as the company outlined in a June corporate update, there are “several important milestones” it aims to achieve over the next 12-18 months. Of these milestones, the most near-term is for HSB-1216.
Hillstream expects to begin GMP manufacture and Phase 0 study in Australia. The first half of 2023 could also become a pivotal time for the company. Plans are to complete Investigational New Drug studies and begin a phase 1 clinical trial.
Given that HILS stock has such a low float, and the chances are that it may get even lower thanks to the buyback, volatility could be something to keep in the front of your mind. Is this on your list of penny stocks today? If so, drop a comment and let us know your take.
HILS Stock Chart
As you’ll see on the HILS stock chart, there haven’t been many big days other than one in March. Meanwhile, daily trading volumes are extremely low. Even with this as the case, traders may have turned attention to the company in the stock market today as the day trading momentum trend continues. Thanks to this year’s stock market crash, longer-term trends are coming second to daily ones.
As a result, technicals have remained a more significant focus over fundamentals while broad sectors continue wavering. Whether or not this is the case for HILS stock today is to be seen. However, considering the news headlines and the premarket trading activity, the HILS float might be the point of interest.