Key points:
- Better Therapeutics shares rallied 56% higher despite a lack of news.
- An influx of buyers drove the move for unclear reasons.
- Many hope that the rally will translate into a sustained uptrend.
The Better Therapeutics Inc (NASDAQ: BTTX) share price rallied 56% today despite the company not making any announcements to trigger the move.
The move left many wondering what was behind the rally, given that BTTX shares have been falling since November 2021. While there is still no clear reason behind the rally, the only reason for an asset rally is that the number of buyers is higher than sellers.
Also read: Five Best Pharmaceutical Stocks To Watch in 2022.
Therefore, in this case, we can assume that many buyers showed up today and started buying BTTX shares. Furthermore, the rationale is supported by the fact that over 6.31 million BTTX shares had changed hands at writing.
Another driver behind the rally could be a flood of retail traders buying BTTX shares following a tip on Reddit, Stocktwits or other similar platforms where retail traders share investment ideas.
However, savvy investors know that influencers often may promote a stock as being cheap and representing great value for investors. Yet, all they want to do is dump the stock onto the unsuspecting retail investors.
The last significant announcement from Better Therapeutics was on March 28, 2022, when the firm released its Q4 2021 results. Again, the company surprised investors by reporting Q4 EPS at $0.71, beating analysts' consensus estimates of $0.46.
Still, BTTX shares did not rally higher on its positive earnings results as investor sentiment towards the company remained negative.
Kevin Appelbaum, Better Therapeutics, Co-founder and CEO, said: “The primary endpoint data we announced last week showed that our PDT for treating uncontrolled type 2 diabetes has the potential to significantly change how we treat this complex, costly, and all too common condition. We look forward to completing our pivotal study next quarter and submitting our de novo classification request to the FDA immediately thereafter.”
Therefore, many investors hope that today’s rally will translate into a sustained uptrend to see BTTX shares rally higher. However, only time will tell if such a move is possible.
*This is not investment advice. Always do your due diligence before making investment decisions.
Better Therapeutics share price.
Better Therapeutics shares rallied 56% to trade at $1.42, rising from Friday’s closing price of $0.91.
