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Safety Shot Stock Surges as Rollercoaster Week Leaves Shorts Stirred

NASDAQ: SHOT stock price ” width=”1200″ height=”675″ />

Key Points

  • Safety Shot’s stock surged after introducing a patented beverage designed to reduce alcohol content and enhance mental clarity.
  • On Wednesday, a critical short report from Capybara Research led to a sharp decline, casting doubt on the legitimacy of Safety Shot’s flagship product and founders.
  • Safety Shot quickly responded to the report, denouncing it as defamatory and inaccurate, and announced plans for legal action while emphasizing their integrity.
  • 5 stocks we like better than Safety Shot

Relatively unknown wellness and functional beverage company Safety Shot NASDAQ: SHOT grabbed attention this week as its stock surged on remarkable volume. The small-cap company witnessed a triple-digit rise before a significant drop on Wednesday but closed the week in positive territory.

The substantial volatility in its shares was influenced by several factors including a new company announcement, technical aspects affecting share supply and demand, a short report, and the company’s response to the short report. This has led to heightened interest in the drink maker. With so much happening, it’s important to delve deeper into the company to determine if its stock has been overestimated or if it’s just beginning.

What is Safety Shot?

Safety Shot is a wellness and functional beverage company focused on researching and developing over-the-counter products and intellectual property. The company’s product pipeline includes Photocil for addressing psoriasis and vitiligo; JW-700 for treating hair loss; JW-500 for women’s sexual wellness; NoStingz, a jellyfish sting prevention sunscreen; and JW-110 for the treatment of atopic dermatitis/eczema. The company primarily sells its products through third-party physical retail stores and partners.

The company’s stock, SHOT, has an average volume of 6.89 million shares, and currently, the company has a market capitalization of just under $100 million. As of the close on Wednesday, shares were trading in the middle of its 52-week range, between $0.31 and $7.5.

Shares SHOT higher this week

Safety Shot shares surged higher this week after the company announced the West Coast launch of Safety Shot, the first patented beverage designed to help people feel better faster by reducing blood alcohol content and improving mental clarity.

CEO Brian John said, “We are super excited to have people try Safety Shot. We have given out thousands of Sample Cans and run hundreds of BAC tests already and have proven that trying Safety Shot is believing in Safety Shot.”

The announcement resulted in exceptional trading volume for shares of Safety Shot. On Monday, the stock traded over 23 million shares. Tuesday saw the stock trade over 77 million shares; on Wednesday, it traded over 66 million shares. An incredible amount traded, considering its average daily volume is just over 6 million shares.

Even more impressive, and what undoubtedly played a significant role in volatility and price movements, was the volume traded relative to the float of SHOT. SHOT has a free float of 21 million shares, meaning that the float could have rotated almost nine times between Monday and Wednesday. Add short sale activity and buy-ins to that intraday, and the ingredients for a short-lived short squeeze exist.

Those factors likely played a more prominent role in the price appreciation than the company announcement.

SHOT responds to short report

Before you consider Safety Shot, you’ll want to hear this.

usafinancetrends keeps track of Wall Street’s top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. usafinancetrends has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on… and Safety Shot wasn’t on the list.

While Safety Shot currently has a “hold” rating among analysts, top-rated analysts believe these five stocks are better buys.

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