Carisma Therapeutics (CARM) stock retreated on Wednesday after the biopharmaceutical company’s shares underwent a massive 389.42% rally on Tuesday. There was no clear news behind this surge, making an argument for it being a “dead cat bounce” or “sucker’s rally.”
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Adding to this is the state of Carisma Therapeutics’ operations. The company has laid off a large portion of its staff and is considering strategic alternatives. Management has even warned that a wind-down of the business could be on the horizon.
With the lack of a catalyst and the dire situation Carisma Therapeutics is in, traders shouldn’t be surprised to learn that the stock is falling after yesterday’s rally. This has CARM shares down 35.1% in pre-market trading today. While Carisma Therapeutics has retained a large portion of its gains from yesterday, that could diminish further over the next few days of trading.
Is Carisma Therapeutics Stock a Buy, Sell, or Hold?
TipRanks’ AI analyst, Spark, offers a Neutral (43) rating and no price target for Carisma Therapeutics. Spark cites “significant financial challenges” including “poor financial performance and valuation metrics” as reasons for this rating.
See what else Spark has to say about CARM stock
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