NeuroMetrix, Inc.. (NASDAQ:NURO) shares rose sharply in Friday trading.
On July 19, the shares of NeuroMetrix began to rise rapidly. Before that day, the stock had been flat for quite some time. The sudden rally looks to have been triggered by none other than Reddit traders.
The short interest in NeuroMetrix now sits below 1%, but at that time it was approaching the 20% threshold.
As a result, NeuroMetrix quickly climbed from $3 to $10 on July 19. But that isn’t the whole story. The price spike appears to have been an interesting coincidence. That’s because, on July 20, NeuroMetrix made an announcement that sent prices rocketing upward for the second consecutive day.
On July 20, a day after getting significant attention due to Reddit traders, the company announced more news that kept its momentum rolling.
The headline of the press release said it all: “NeuroMetrix Receives FDA Breakthrough Device Designation for Treatment of Fibromyalgia with its Wearable Neurostimulation Technology.”
The company’s Quell device, alluded to earlier, received breakthrough designation from the FDA. The device treats the symptoms of fibromyalgia in adults. The company was quick to note that the breakthrough status does not indicate that the FDA has approved the device.
NeuroMetrix is a fairly healthy company with better financial results than most fledgling biotechnology firms.
NeuroMetrix continues to post attractive revenue growth. In the second quarter, its revenues increased 62.8% year-over-year to $2.213 million.
Shares ballooned $4.24, or 42.5%, to $14.21.