Chembio Diagnostics (NASDAQ:CEMI) Stock Sees Profit Booking After The Monster Rally
Diagnostics company Chembio Diagnostics (NASDAQ:CEMI) which is mainly focussed on infectious diseases, saw its stock emerge as one of the major gainers over the past week.
That being said, it should be noted that after the stock soared, there was a decline as well due to profit taking and on Friday, the stock went down by 29%. The gains made by the stock over the past week not stand at 27%. The rally in the stock was triggered after the announcement from the company about bagging an order for its DPP SARS-CoV-2 Antigen tests worth as much as $28.3 million. The announcement led to handsome gains in the stock soon after.
The purchase order had been placed by Bio-Manguinhos and is meant for supporting the needs of the Ministry of Health in Brazil with regards to the handling of the COVID 19 pandemic in the country. The deliveries of these tests are going to take place over the course of this year. The rally in the stock over the past week is hence perfectly understandable. However, it is going to be interesting to see if the stock becomes an attractive investment for new investors after the sharp correction on Friday due to profit taking.
Market Reaction:
On Friday, CEMI stock slumped 29% at $3.06 with more than 20.04 million shares, compared to its average volume of 9.53 million shares. The stock has moved within a range of $2.9500 – 4.0600 after opening the trade at $4. Over the past 52-week, the stock has been trading within a range of $2.0600 – 8.7500.
