- Lucira Health share price surged by over 440%.
- It rose after the company received an Emergency User Authorization for its Covid test.
Lucira Health (NASDAQ: LHDX) stock price had the perfect start of the year as its shares surged. The LHDX share price surged by more than 440% on Tuesday after the company received some positive news from the Food and Drug Administration (FDA). It jumped to a high of $0.8737, which was the highest level since November 7th of 2022. At its peak, the stock was up by more than 682% from its 2022 low, giving it a market cap of over $4.5 million. Other top performers in Wall Street were Jasper Therapeutics, Reshape Lifesciences, and Vivos Therapeutics.
Why did Lucira shares surge?
Lucira Health is a company in the health industry that manufactures and sells Covid-19 tests. The company sells its Covid test devices for about $30. It also has developed a home test device for flu. Therefore, with the world moving away from Covid-19, the Lucira Health share price plunged from $10 in 2022 to a low of $0.10 during the year. The same explains why stocks like Novavax and Moderna stock plunged in 2022.
Lucira Health stock price surged after the FDA announced that it had received an emergency use authorisation for the OTC use of its Covid and flu test. The grant was awarded in November last year. As a result, the company plans to make the tests available online and in pharmacies countrywide. Still, there are concerns about whether the company will be able to make money from the test.
Recent data shows that most Americans have been vaccinated and the number of deaths has bottomed. Similarly, people seem to have no major concerns about Covid. Data shows that the US reported over 76k Covid cases on Tuesday, higher than the 7-day moving average of 53k. Deaths have declined to less than 350 per day. Another concern is competition since there are similar products in the market already. This explains why Lucia Health shares plunged in extended hours.
Lucira Health stock price forecast
The daily chart shows that the Lucira share price has been in a strong bearish trend in the past few months. It fell to $0.110 in December. Now, it surged to a high of $1 as investors cheered the new authorisation for its Covid test. As it rose, the shares managed to move above the 25-day moving average while oscillators jumped. However, I suspect that these moves will not be sustainable, which will push the shares much lower in the coming days.
