Pasithea Therapeutics (NASDAQ:KTTA) stock is falling on Wednesday after the company’s shares experienced major volatility on Tuesday.
Investors watching KTTA stock will note that it closed out Tuesday up less than 1%. However, in earlier trading that day the stock saw gains of more than 100%.
So what happened?
Pasithea Therapeutics saw its shares rally in early morning trading on Tuesday alongside results from two preclinical trials. That came with heavy trading pushing the shares higher. However, it was unable to maintain that increased price.
It’s possible that this has to do with KTTA being a penny stock. That opens it up to vulnerabilities, such as extreme volatility. It could be that day traders latched onto the stock yesterday alongside the study news and then sold their shares when prices peaked.
KTTA Stock Movement on Wednesday
As for KTTA stock movement today, the company’s shares are down 11.8% during pre-market trading on Wednesday. That comes as some 31,000 shares change hands, as compared to its daily average of about 1.7 million shares.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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