InspireMD Plunging More Than 20%; Is There a Pattern Emerging?

InspireMD stock

InspireMD (NYSE:AMERICAN:NSPR) has been on quite the rollercoaster ride lately. Not one of the fun kinds, either. It’s more like the ride you regret going on the second the bar locks you in. As for me, I’ve felt like the worried Mom watching from the side for the past two weeks, watching closely, biting my nails, as the company’s stock experienced significant highs and lows. Today though, InspireMD stock is plunging more than 20%.

What’s Been Going On?

It’s been like this for the past two weeks. It all started on January 30, when the small-cap company started trading up nearly 20%. Then, on February 2, shares of InspireMD dropped nearly 10%. As for this week, the stock has followed a similar pattern. On February 6, InspireMD was trading up nearly 10%. Can you guess how the stock is doing today?

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If you guessed that it was trading down, you’re right. As of this writing, InspireMD is trading at $4.18, which puts the stock down $1.24, or 22.85%. So, what happened? Well, contrary to what some might think, today’s drop doesn’t seem to have anything to do with what was going on last week, which most likely caused last week’s rollercoaster ride. Last week, investors were reacting to the company’s news that one of its systems had been featured, twice, in a live case transmission.

>>Read More About InspireMD’s Embolic Prevention System

Today, things are a little different. The more than 20% drop seems to be caused by investors reacting to what the company disclosed on Wednesday, February 7. Yesterday, the Israel-based company announced a 1-for-35 reverse split of its common stock. As a result, today, February 8, is the first day the company’s common stock will be trading on the NYSE American exchange on a split-adjusted basis. The reverse stock split is thought to cause a cut in the number of shares of common stock outstanding.

The Takeaway

As for the pattern that I think I see surfacing in the company’s stock, I can’t say for sure that I’ve got it down lock and key. Only time will tell. Therefore, I will be sure to keep an eye on the company and its stock all through next week.

How about you?

Featured Image: Depositphotos/© toxawww