Please ensure Javascript is enabled for purposes of website accessibility

Why PolarityTE Stock Is Shooting Higher Today

By Brian Feroldi – Updated Apr 12, 2019 at 1:38PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Traders cheered after some positive regulatory news emerged.

What happened

Shares of PolarityTE (PTE 3.70%), a commercial-stage biotech focused on regenerative medicine, were up 16% as of 11:20 a.m. EDT on Monday. The jump came in the wake of a report from Piper Jaffray stating that the FDA is closing its investigation into the company's manufacturing processes.

So what

The FDA has been investigating one of PolarityTE's manufacturing facilities since the summer of 2018. Piper Jaffray recently published a research note stating that the has agency concluded its investigation and has updated the status of the case to "Voluntary Action Indicated."

This news should come as some relief to PolarityTE's bulls, as it indicates that no enforcement action will be taken by the agency.

Scientist looking through a microscope in a lab

Image source: Getty Images.

Since PolarityTE is a heavily shorted stock -- more than half of the company's shares outstanding have been sold short -- it isn't surprising to see that this news is lifting its share price higher.

Check out the latest earnings call transcripts for the companies we cover.

Now what

PolarityTE looks like it is in the clear as it stands today, but that doesn't mean that it will be smooth sailing for this company moving forward. My colleague Maxx Chatsko has previously pointed out that PolarityTE has a dicey history and that it has engaged in some questionable business practices in the past. That alone is reason enough for me to believe that investors should focus their attention on more promising companies.

Brian Feroldi has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

PolarityTE, Inc. Stock Quote
PolarityTE, Inc.
$0.84 (3.70%) $0.03

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 10/04/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.