Why TransCode Therapeutics (RNAZ) Stock Is Getting Hammered

TransCode Therapeutics Inc RNAZ shares are trading lower by 40.6% to $0.84 during Monday’s session after the company disclosed plans for a potential reverse stock split in an open letter to its shareholders. The proposal arises from the company’s failure to meet the Minimum Bid Requirement, as its common stock did not close at $1.00 or more for any ten-day period ending May 6.

Nasdaq has consequently notified TransCode Therapeutics of potential delisting, prompting the company to seek shareholder approval for the reverse split. In the event of a reverse split, the Board of Directors would be authorized to take action if they believe it serves the best interests of both the company and its shareholders.

While there’s no assurance that the reverse split alone will prevent delisting, the company and its advisors believe it represents the best chance to maintain its Nasdaq listing. TransCode Therapeutics underscored its commitment to exploring every avenue to safeguard shareholder interests and ensure continued listing on The Nasdaq Capital Market.

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Should I Sell My RNAZ 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 TransCode Therapeutics RNAZ have lost 99.62% year to date. This compares to the average annual return of -92.39%, meaning the stock has underperformed 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. TransCode Therapeutics stock currently has an RSI of 86.23, indicating overbought conditions.

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RNAZ has a 52-week high of $309.60 and a 52-week low of $0.42.