What's Going On With Jaguar Health Stock?

Jaguar Health, Inc. JAGX shares are trading lower Thursday, and the stock is down more than 65% over the past five days. 

The Details:

Jaguar Health shares are falling after the stock effected a reverse split at an exchange ratio of 1-for-60 Thursday, in order to support the company's compliance with Nasdaq listing requirements.

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.

Jaguar Health is a commercial-stage pharmaceuticals company focused on developing novel, plant-based, non-opioid and sustainably derived prescription medicines for people and animals with GI distress, specifically chronic diarrhea.

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Should I Sell My JAGX 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 Jaguar Health have lost 85.09% year to date. This compares to the average annual return of -92.74%, 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. Jaguar Health stock currently has an RSI of 10.93, indicating oversold conditions.

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JAGX Price Action: According to Benzinga Pro, Jaguar Health shares are down 20.5% at $6.11 at the time of publication Thursday.

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