SeaStar Medical Holding (NASDAQ: ICU) stock price has done well this year even as the company continued diluting its shareholders. The stock is about to hit $1, meaning that it has surged by more than 177% from the lowest point in December and by 495% from its 2023 low. Its market cap has jumped to over $55 million.
SeaStar Medical shares have surgedICU stock has surged this year as it has become a popular name among retail traders. This is in line with other popular companies like Phunware, Mullen Automotive, and Bit Brother, which I wrote about here.
The surge has been accompanied by higher volume. Data by Yahoo Finance shows that over 9 million shares exchanged hands on Tuesday, higher than the three-month average of 4 million. There were over 21 million shares on Monday as American equities surged.
This performance has happened even as the company continued to dilute its shareholders. The number of outstanding shares have jumped to over 27.2 million, up from 10.45 million in 2021. This means that people who have held the stock since then have lost substantial sums since the shares have dropped from $22 to $1.
In December, the company filed for a $100 million mixed shelf. In January, it filed to sell 8.25 million shares and launched a $9 million direct offering and the dilution may continue since the company is still burning cash.
The only ray of hope is that the company received a breakthrough from the FDA in November. The FDA gave it a breakthrough designation for a device to protext acute kidney injury in patients with chronic kidney failure.
ICU stock price analysis
Turning to the daily chart, we see that the ICU share price bottomed at $0.1727 in 2023. Since then, the stock has staged a strong recovery and moved slightly above the 50-day and 25-day moving averages. The stock’s volume has remained at an elevated level but it remains below its October and November highs.
Technically, the stock seems to be on an uptrend, with the next price to watch being at $1.24, its highest point on October 30th. This price is about 29% above the current level. A move above this level will lead to more upside. Fundamentally, however, I’d avoid buying and holding the company because of its dilution and its volatility.
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