Please ensure Javascript is enabled for purposes of website accessibility

Why Ocugen Climbed 8% Higher Today

By Eric Volkman - Jun 24, 2021 at 6:02PM

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

The company will join a rarefied club starting early next week.

What happened

Investors again got excited about Ocugen (OCGN -4.12%) on Thursday, sending the shares 8.1% higher at market close. There was no direct, market-driving news behind this; it's very possible that investors are loading up in advance of an important milestone for the stock.

So what

Last week, Ocugen excitedly announced that its stock will be a component of the Russell 3000 index, as a result of the index's once-per-year reconstitution. This is effective before market open on Monday, so both institutional and individual investors might be buying on the hopes of a lift once Ocugen's membership becomes official.

Face mask on top of $100 bills.

Image source: Getty Images.

The clinical-stage biotech rose to fame in the thick of the coronavirus pandemic thanks to Covaxin, the vaccine it's co-developing to fight the big global health threat. At the moment, it has no other pipeline product that has advanced into meaningful clinical testing.

Now what

With Thursday's stock price pop, the bullishness over Ocugen's Russell 3000 graduation has worn off. 

While the stock will doubtlessly benefit by being on the radar of the big pile of index funds currently popular with investors, it's still a dicey investment. Ocugen has scotched plans to seek Emergency Use Authorization from the FDA for Covaxin, in favor of filing for a biologics license application -- a type of formal approval -- from the regulator.

Despite the threat of the delta variation of the coronavirus, the pandemic continues to recede across the U.S. And that lack of depth in the company's pipeline only adds to doubts about its future potential.


Eric Volkman 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

Ocugen, Inc. Stock Quote
Ocugen, Inc.
$2.56 (-4.12%) $0.11

*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 08/18/2022.

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.