Alterity Therapeutics (NASDAQ:ATHE) Stock Pulls Back on Profit Booking: Time To Buy?

When a stock records strong gains then it is almost a certainty that a bit of profit book is going to lead to a correction and that is what seemed to have happened with the Alterity Therapeutics Ltd (NASDAQ:ATHE) stock on Wednesday.

Yesterday, a bit of profit taking from investors resulted in a 5% decline in the Alterity stock but at the same time it should not be forgotten that the stock is still up by as much as 18% over the past week. One of the most important boosts for the stock was the announcement from Alterity last week with regards to the awarding of a new patent.

The award of this patent is a major development for Alterity considering the fact that it is going to help the company in its quest of developing a product for the treatment of well known neurodegenerative conditions like Parkinson’s and Alzheimer’s. The United States Patent and Trademark Office awarded Alterity a new composition matter patent.

The announcement resulted in considerable excitement among investors with regards to the Alterity stock and soon enough it was flying. It is now going to be interesting to see if the stock resumes its rally after the bit of profit taking yesterday.

Market Reaction:

On Wednesday, ATHE stock slid 5% at $1.58 with more than 3.29 million shares, compared to its average volume of 6.06 million shares. The stock had moved within a range of $1.4450 – 1.7200 after opening the trade at $1.72. Over the past 52-week, the stock has been trading within a range of $1.0900 – 5.1500.