Novabay Pharmaceuticals (NBY) shares plunge 15.84% pre-market amid institutional activity and shifting sentiment.

Dec 24, 2025 - Novabay Pharmaceuticals (NYSEAMERICAN:NBY) shares plunged 15.8379% in pre-market trading following institutional investor activity and market sentiment shifts. The stock opened at $5.12 after closing at $5.43 in the previous session, with the latest price at $4.78 amid thin volume of 180,444 shares traded.

Institutional investors showed mixed positioning in recent quarters, with C2C Wealth Management LLC increasing its stake by 78.2% in Q2 to hold 98,000 shares valued at $57,000. New entrants including Apollon Wealth Management LLC and Ground Swell Capital LLC added $35,000 and $25,000 positions in Q3 respectively, reflecting cautious optimism despite the stock's 52-week low trading range. Institutional ownership now stands at 23.25% of the float.

The biotech firm's Aganocide®-based pipeline targeting non-antibiotic anti-infectives remains under scrutiny, with its commercial products Avenova and NeutroPhase facing ongoing market validation challenges. Technical indicators show the stock trading below both 50-day ($1.54) and 200-day ($1.29) moving averages, signaling continued bearish momentum in the near term.

Analysts have remained cautious, citing the company's limited commercial traction and high cash burn rate. While the recent FDA approval for NeutroPhase has opened new market access, the biotech sector continues to price in long-term uncertainty for smaller players without clear revenue visibility.