TNF Pharmaceuticals Plunges 23.38%—Is the Reverse Stock Split a Death Knell?

Summary
• TNFA’s stock price tumbles to $0.0472, a 23.38% drop from its previous close of $0.0616
• Reverse stock split announced at 100:1 ratio triggers immediate liquidity concerns
• Technical indicators signal bearish momentum with RSI at 35.16 and MACD at -0.0121

Today’s collapse in TNF Pharmaceuticals (TNFA) has sent shockwaves through the biotech sector. The stock’s freefall follows a 100:1 reverse stock split, a procedural move often associated with delisting risks. With TNFA trading near its 52-week low of $0.044 and a dynamic PE ratio of -0.89, the market is grappling with whether this is a short-term panic or a deeper structural crisis. The stock’s intraday range of $0.044–$0.0507 underscores extreme volatility, while sector peers like Amgen (AMGN) remain resilient.

Reverse Stock Split Sparks Investor Panic
TNFA’s 23.38% intraday plunge is directly tied to its announced 100:1 reverse stock split, which will reduce outstanding shares from 178.6 million to 1.79 million. While reverse splits are typically used to boost share prices and maintain listing standards, the move has triggered immediate skepticism. The stock’s price has already fallen to $0.0472, just above its 52-week low of $0.044, raising concerns about liquidity and market confidence. The company’s dynamic PE ratio of -0.89 further underscores its unprofitable status, compounding fears of a downward spiral. The reverse split, effective September 2, 2025, is seen as a procedural lifeline rather than a strategic revival, with investors questioning the company’s ability to attract capital post-split.

Biotech Sector Mixed as Amgen Leads Gains
While TNFA’s collapse dominates headlines, the broader biotech sector shows mixed signals. Amgen (AMGN), a sector leader, rose 0.576% intraday, reflecting resilience in established players. Smaller biotechs like EPIX and AZTR also posted modest gains, highlighting divergent investor sentiment. TNFA’s freefall contrasts sharply with sector peers, underscoring its unique challenges tied to the reverse split and liquidity risks.

Bearish Technicals and ETF Hedging—Focus on Key Levels
• 200-day MA: $0.519 (far above current price)
• RSI: 35.16 (oversold territory)
• MACD: -0.0121 (bearish divergence)
• Bollinger Bands: $0.0622–$0.1245 (current price near lower band)

TNFA’s technicals paint a grim picture. The stock is trading near its 52-week low and is deeply oversold on RSI, but bearish momentum remains intact. With no options available for analysis, traders should focus on ETFs like XLB (Biotech Select Sector SPDR) to hedge against sector-wide risks. Short-term traders may consider selling into rallies near the 30-day support of $0.1006, but the 200-day MA at $0.519 is a distant target. The lack of options liquidity means aggressive strategies are off the table, leaving conservative shorting or ETF hedging as primary options. For now, monitor TNFA’s ability to hold above $0.0454 and watch for a potential rebound near the 30-day support level.

Backtest TNF Pharmaceuticals Stock Performance

TNFA’s Freefall: Time to Exit or Wait for a Bounce?
TNFA’s 23.38% drop signals a critical juncture for investors. The reverse stock split, while procedural, has exacerbated existing bearish trends, and technical indicators suggest further downside. The stock’s proximity to its 52-week low and weak RSI reading indicate a high risk of continued selling pressure. Meanwhile, Amgen’s 0.576% gain underscores the sector’s resilience. For now, traders should monitor TNFA’s ability to hold above $0.0454 and watch for a potential rebound near the 30-day support level. If the stock breaks below $0.0454, it could trigger a liquidity crisis. Aggressive short-sellers may find opportunities here, but the lack of options liquidity limits leverage. In the broader biotech space, XLB offers a safer bet for hedging. The key takeaway: TNFA’s near-term outlook is bleak, and patience—or a disciplined exit—may be the best strategy.