Penny stocks are one of the quickest ways to make money in the stock market. Whether you’re day trading, swing trading, or even investing, these cheap names can offer the potential for significant gains. On an almost daily basis, we see various companies attract the attention of retail traders for their dramatic moves in the stock market.
Today, we will discuss one of the hot penny stocks trending right now: Pasithea Therapeutics Corp. (NASDAQ:KTTA). Why is it moving, what has happened leading up to today, and are there any additional details you can use to decide whether or not KTTA stock is worth buying or not?
Hot Penny Stocks Today: What To Know About Pasithea Therapeutics Corp. (NASDAQ:KTTA)
Biotech stocks have been a mixed bag over the last few months. Take a look at the iShares Nasdaq Biotech ETF (NASDAQ:IBB), and you’ll see what I mean. Ever since the back half of September, the IBB has been unable to gain ground. Even with this as the case, there are still plenty of individual companies to watch that have broken out big in the stock market. Today, Pasithea Therapeutics Corp. is the latest to follow suit.
What Does Pasithea Therapeutics Corp. (NASDAQ:KTTA) Do?
Pasithea Therapeutics is a biotech company researching treatments for psychiatric and neurological disorders. According to Research And Markets, the global psychiatrists market reached a value of nearly $197 billion in 2019. It’s also expected to grow at a Compound Annual Growth Rate of 6.9% and reach nearly $256.9 billion by 2023.
KTTA Stock News
On November 23, KTTA stock skyrocketed during premarket trading. Why is KTTA on the move? The company announced, Pasithea Clinicas, a subsidiary, was approved for offering esketamine nasal spray, SPRAVATO. This is specifically in adult patients with treatment-resistant depression (TRD). Other specifics of this KTTA news headline include:
- The company has begun offering the treatment in its Knightsbridge, London location.
- According to Pasithea, only 3 clinics in the U.K. are accredited to offer this treatment.
- SPRAVATO nasal spray has a mechanism of action, working differently compared to therapies currently available for major depressive disorder and is approved in the US along with an oral antidepressant for treating adullt patients with TRD.
- This news comes a few weeks after Pasithea reported that it administered intravenous ketamine therapy to its first patients in the U.K.
- Ketamine has shown efficacy in treating certain psychiatric disorders, including TRD and post-traumatic stress disorder.
KTTA Stock Forecast
Pasithea is a relatively new company in the public markets. It did its IPO in September and has been unable to reclaim any ground lost over the last few weeks. The high on its IPO date was $4.19, and KTTA stock recently hit a low of $2.10 on November 22, nearly 50% off its high. Shares surged to premarket highs on November 23 of $6.55 following the news. But as far as the KTTA stock forecast is concerned, there are currently no analysts covering the stock. However, something to note is that KTTA stock has a relatively lower float so volatility could become a big factor in the stock market today, especially with fewer than 14 million shares outstanding right now.