Why Calidi Biotherapeutics (CLDI) Stock Is Down 30%

Calidi Biotherapeutics Inc CLDI shares are trading lower by 32% to 92 cents during Friday’s session after the company priced its public offering of 5 million shares of common stock at $0.85 per share, aiming to raise approximately $4.25 million in gross proceeds.

The offering is set to close on January 10, pending customary closing conditions. Ladenburg Thalmann & Co. Inc. is the exclusive placement agent for the transaction.

Calidi says the company plans to use the proceeds for working capital and general corporate purposes.

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Should I Sell My CLDI 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 Calidi Biotherapeutics CLDI have lost 92.85% year to date. This compares to the average annual return of -76.04%, 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. Calidi Biotherapeutics stock currently has an RSI of 55.44, indicating neutral conditions.

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CLDI has a 52-week high of $16.80 and a 52-week low of $0.73.