60 Degrees (SXTP) Surges 19.46% Intraday: Reverse Split, Analyst Hype, or Technical Breakout?

Summary
• 60 Degrees Pharmaceuticals (SXTP) surges 19.46% to $0.5562, trading near its 52-week high of $6.
• Company announces 1-for-4 reverse stock split to regain Nasdaq compliance, effective January 20, 2026.
• Analysts split on SXTP, with a $4.50 average price target (332.69% upside) but a 'Hold' consensus rating.

60 Degrees Pharmaceuticals (SXTP) has ignited a dramatic intraday rally, surging 19.46% to $0.5562 amid a pivotal reverse stock split and mixed analyst sentiment. The stock’s sharp rebound from a 52-week low of $0.34 to its current level reflects a confluence of regulatory maneuvering, analyst optimism, and technical volatility. With the reverse split set to reduce outstanding shares by 75%, the market is weighing whether this move will stabilize SXTP’s capital structure or trigger further short-term turbulence.

Reverse Split Drives Short-Term Volatility
The 1-for-4 reverse stock split, approved by shareholders in October 2025 and authorized by the board in December, is the primary catalyst for SXTP’s intraday surge. By consolidating shares from 5.15 million to 1.29 million, the company aims to meet Nasdaq’s minimum bid price requirement and stabilize its capital structure. This move has historically triggered mixed market reactions, as it reduces liquidity while signaling management’s commitment to regulatory compliance. The stock’s 19.46% intraday jump suggests investor optimism that the reverse split will catalyze a rebound in SXTP’s valuation, particularly as the company advances its FDA-approved malaria prevention therapy, ARAKODA.

Technical Divergence and Analyst Hype: A High-Risk Setup
• RSI: 25.72 (oversold)
• MACD: -0.117 (bearish), Signal Line: -0.126 (bearish), Histogram: 0.009 (neutral)
• Bollinger Bands: Lower band at $0.339 (current price near lower band)
• 200-day MA: $1.66 (far above current price)

SXTP’s technical profile is a study in contradictions. While the RSI at 25.72 suggests extreme oversold conditions, the MACD remains bearish, and the 200-day MA at $1.66 indicates long-term bearish pressure. The stock’s current price near the Bollinger Bands lower bound hints at a potential rebound, but the absence of options liquidity and a leveraged ETF complicates position sizing. Analysts’ $4.50 average price target implies a 332.69% upside, but the stock must first break above its 52-week high of $6 to validate this optimism. Traders should monitor the 52-week high as a critical resistance level and the reverse split’s market reception for near-term direction.

Backtest 60 Degrees Stock Performance
The backtest of SXTP's performance after a 19% intraday increase from 2022 to now reveals mixed results. While the stock experienced a significant surge initially, the overall trend was negative, with the 3-day win rate at 41.77%, the 10-day win rate at 34.14%, and the 30-day win rate at 33.73%. The maximum return during the backtest period was -0.68%, indicating that the stock failed to capitalize on the intraday gain over the longer term.

Reverse Split as a Double-Edged Sword: Act Now or Watch the Volatility
SXTP’s 19.46% intraday surge underscores the high-stakes nature of its reverse stock split and regulatory compliance efforts. While the move aims to stabilize the stock, the technical indicators and analyst consensus suggest a volatile path ahead. Investors should prioritize monitoring the 52-week high of $6 and the reverse split’s market reception, as these will determine whether the rally is sustainable. Meanwhile, sector leader Pfizer (PFE) fell 0.68% intraday, highlighting the pharmaceutical sector’s mixed performance. For SXTP, the coming weeks will test whether the reverse split can catalyze a meaningful rebound or if the stock reverts to its long-term bearish trend. Act now: Watch the $6 level and reverse split execution for directional clues.