What's Going On With Psyence Biomedical Stock?

Psyence Biomedical Ltd. PBM shares are racing higher Friday. The company recently announced its subsidiary, Psyence Australia, received Human Research Ethics Committee approval to initiate its Phase IIb study.

The Details:

On Wednesday, Psyence Biomedical announced the approval for its Phase IIb study to examine the use of psilocybin as a treatment for Adjustment Disorder due to a recent cancer diagnosis in the palliative care context. 

“We are very pleased to have received HREC’s approval to initiate this clinical trial in the field of palliative care that, if successful, will enable us to seek a paradigm shift in the treatment of patients with life-limiting illnesses, improving quality life and elevating the standard of care,” said Dr. Neil Maresky, Psyence CEO. 

Psyence shares are moving on very heavy trading volume Friday. According to data from Benzinga Pro, more than 126 million shares have already been traded in the session, compared to the stock’s 100-day average of less than 857,000 shares. The stock has a float of only 4.7 million shares.

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Should I Sell My PBM Stock?

Whether to sell or hold a stock largely depends on an investor's strategy and risk tolerance. Swing traders may sell an outperforming stock to lock in a capital gain, while long-term investors might ride out the turbulence in anticipation of further share price growth.

Similarly, traders willing to minimize losses may sell a stock that falls a certain percentage, while long-term investors may see this as an opportunity to buy more shares at a discounted price.

Shares of Psyence Biomedical have gained 43.4% year to date. This compares to the average annual return of -49.57%, meaning the stock has outperformed its historical averages. Investors can compare a stock's movement to its historical performance to gauge whether this is a normal movement or a potential trading opportunity.

Investors may also consider market dynamics. The Relative Strength Index can be used to indicate whether a stock is overbought or oversold. Psyence Biomedical stock currently has an RSI of 97.01, indicating overbought conditions.

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PBM Price Action: According to Benzinga Pro, Psyence Biomedical shares are up 140% at $3.06 at the time of publication.

Image: Gerd Altmann from Pixabay