8% is not a good deal in investing returns terms but when a stock has been posting red numbers for a while, anything in the green is welcomed. That is the case for investors in biotech company Ritter Pharmaceuticals, Inc. (NASDAQ: RTTR). On Thursday, RTTR, the developer of novel therapeutic products that modulate the human gut microbiome to treat gastrointestinal diseases made a big announcement when it confirmed that it has gathered the additional findings for Phase 2b/3 study which was set up to evaluate its lead drug candidate RP-G28.
RTTR went into a few details about the findings but it was the response from investors that proved to be the highlight of the day. RTTR opened the day at 0.57 and subsequently rallied to a high of 0.65. The low for the day was 0.57 but the stock did claw back some of the earlier gains, finishing the day up 8% to close at 0.62. Volume levels pretty much supported the valuation climb and by the close of play RTTR had seen over 1.4M shares changing hands. This volume explosion wasn’t half bad considering that the stock had previously set an average volume over 30 days of just 413K. The big breakout, then, was a sign that investors are now starting to see the upside opportunities that are present in the stock. The target price of 5.00 will only serve as a further catalyst for investors who need and extra nudge to believe in the promise offered by a flaming biotech like RTTR. The stocks short term movement also hints at big things to come down the road potentially. Take the DMA 20 for instance, that figure is up 8%. Things could be very interesting in the coming weeks and months.