Relmada Therapeutics (NASDAQ: RLMD) Soars 44.52% on CEO's $266K Insider Purchase, Strategic Moves Fuel 79.49% Rally

Relmada Therapeutics (NASDAQ: RLMD) surged 44.52% on Thursday, marking a four-day rally that propelled the stock to a 79.49% cumulative gain. The share price reached its highest level since August 2025, with an intraday peak of $1.19—a 52.56% jump from its previous close. The sharp rebound has drawn attention to the biotech firm’s recent strategic moves and technical indicators.

The momentum was fueled by CEO Sergio Traversa’s $266,000 insider purchase of 266,000 shares at $0.69, signaling confidence in the company’s long-term prospects. This transaction coincided with a 30.4% intraday rally, pushing the stock above key moving averages and triggering speculative trading. Analysts have cited a 392.61% projected upside, with a $5.00 average price target, underscoring optimism about Relmada’s pipeline and governance alignment.

Technically, RLMD’s price action has been supported by bullish signals, including a positive MACD divergence and an overbought RSI of 74.06. The stock’s ascent above the 200-day ($0.6845) and 30-day ($0.6258) moving averages has attracted momentum-driven investors. Options activity, particularly the RLMD20250919C1 call option, reflects leveraged bets on continued strength, with elevated implied volatility amplifying short-term positioning.

On the fundamental front, Relmada’s lead candidate, Esmethadone (REL-1017), is advancing through Phase 3 trials for major depressive disorder. The trial’s success could catalyze regulatory approval and commercialization, offering a critical value inflection point. Recent strategic hires, including urologic oncologist Yair Lotan to chair the Clinical Advisory Board, further bolster credibility in its therapeutic focus. However, the company’s financials remain challenging, with a projected $0.63 loss per share and a P/E ratio of -0.46, highlighting its high-risk profile.

Market sentiment has improved, evidenced by a 5.33% decline in short interest and a days-to-cover ratio of 0.9, indicating reduced bearish pressure. Institutional ownership at 45.24% and insider stakes at 20.70% suggest alignment with management’s vision. While the recent Q2 2025 earnings report showed a $0.30 loss per share, the stock’s technical strength and insider confidence have positioned it as a speculative play in the biotech sector. Analysts caution that overbought conditions and historical volatility—marked by a 94.1% max drawdown—warrant caution for long-term investors.