What's Going On With Kala Pharmaceuticals Shares Today

Kala Pharmaceutical KALA shares skyrocketed more than 20% Monday morning on higher-than-average volume. On an average market day, Kala shares trade about 2.5 million times throughout the day. But, Monday morning, Kala shares had already been traded 3 million times around 10 am ET.

HC Wainwright & Co maintained a Buy rating on Kala and raised its price target from $12 to $20, which could be attributing to some of the volatility in the name today.

But, Kala was not the only biotech stock to show strength Monday morning. BridgeBio Pharma Inc BBIO and Avalon Globocare ALBT also showed considerable strength, trading up nearly 60% and 50% respectively.

What’s Going On?

It’s not rare to see volatile moves in small-cap biotech stocks like Kala and Avalon, despite a lack of company-specific news. It could be a sign that investors are more willing to take on speculative risks in the current macro environment. Another possible explanation is that momentum traders have recognized the strength in smaller biotech names and are buying them up as a result.