PFE - Should You Sell or Hold a Stock after a 6X Gain in Two Days?
Following the announcement of positive mid-phase testing for its schizophrenia treatment KarTX, Karuna Therapeutics, Inc. (NASDAQ: KRTX) enjoyed a 443% gain on November 18 and a 29.2% gain on November 19 to close at $123.99. That Tuesday's close represented a 6X+ gain over the previous Friday's close (below $18).
We've had some time to let the buzz simmer down. As of November 22nd's close, Karuna stood at $85.01 – a 31.44% loss from its weekly closing high, but still a 370%+ overall gain from before the mania. The pullback was at least partially attributable to the company's offering of 2,600,000 shares of its common stock to the public at $96 per share after the surge.
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