Why Is Galecto Stock (GLTO) Up 575% Today?

Galecto (GLTO) stock rocketed higher on Tuesday despite a lack of news from the biotechnology company. There are no new press releases or filings with the Securities and Exchange Commission (SEC) that explain why shares of GLTO stock are on the rise today.

Even so, traders are flocking to Galecto stock today, with some 42 million shares traded during pre-market hours. To put that in perspective, the company’s three-month daily average trading volume is well below that, at just 2.13 million units.

Turning to the company’s stock, Galecto has a float of 1.23 million shares. Traders will note that 3.68% of this float is held by insiders, while another 11.24% is held by institutions. The short interest of the company’s float is 6.51%, while the short interest of its outstanding shares is slightly lower at 6.28%.

Galecto Stock Movement Today

The increased trading activity has done wonders for Galecto stock in pre-market trading on Tuesday. This has the shares up 575.74%, though they experienced even larger gains in earlier morning trading. Potential investors will note the stock fell 2.11% on Monday, is down 20.22% year-to-date, and has fallen 50.46% over the past 12 months.

It’s also worth noting that Galecto stock was firmly in penny territory before the massive pre-market rally. The stock closed normal trading hours at $3.71, with a market capitalization of $4.91 million. This makes it more vulnerable to manipulation, such as a pump and dump, which may help explain today’s movement.

Is Galecto Stock a Buy, Sell, or Hold?

Turning to Wall Street, analyst coverage of Galecto stock is lacking. Fortunately, TipRanks AI analyst Spark has it covered. Spark rates GLTO stock an Underperform (29) with no price target. It cites “significant financial challenges, with no revenue, ongoing losses, and high cash burn” as reasons for this stance.

See what else Spark has to say about GLTO stock