Why Jaguar Health Stock Is Tanking

Jaguar Health, Inc. JAGX shares are falling Monday after the company announced a 1-for-60 reverse stock split.

The Details:

The company will effect a reverse stock split at an exchange ratio of 1-for-60, on Thursday, in order to support the company’s compliance with Nasdaq’s listing standards.

“Jaguar’s board of directors has determined that effecting a reverse stock split at this time will, in addition to supporting the Company’s compliance with Nasdaq’s listing standards, provide Jaguar with the opportunity to achieve a share price and outstanding share count that is more attractive to institutional investors,” said Lisa Conte, Jaguar’s CEO.

Last week, Jaguar reported worse-than-expected first-quarter results with losses of 6 cents per share, compared to the losses of 3 cents per share analyst estimate. Quarterly sales also came in below the consensus estimate at $2.351 million. 

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JAGX Stock Prediction 2024:

Equity research analysts on and off Wall Street typically use earnings growth and fundamental research as a form of valuation and forecasting. But many in trading turn to technical analysis as a way to form predictive models for share price trajectory.

Some investors look to trends to help forecast where they believe a stock could trade at a certain point in the future. Looking at Jaguar Health, an investor could make an assessment about a stock's long term prospects using a moving average and trend line. If they believe a stock will remain above the moving average, which many believe is a bullish signal, they can extrapolate that trend into the future using a trend line. For Jaguar Health, the 200-day moving average sits at $0.23, according to Benzinga Pro, which is above the current price of $0.14. For more on charts and trend lines, see a description here.

Traders believe that when a stock is above its moving average, it is a generally bullish signal, and when it crosses below, it is a more negative signal. Investors could use trend lines to make an educated guess about where a stock could trade at a later date if conditions remain stable.

JAGX Price Action: According to Benzinga Pro, Jaguar Health shares are down 42.5% at 14 cents at the time of publication Monday.

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