HCW Biologics (HCWB) stock is falling on Monday as retail investors take profits after a massive 262% surge during the previous trading session. Despite the pullback, the stock remains sharply higher overall. Nasdaq futures are down 0.37% while S&P 500 futures have shed 0.43%.

Examining The Prior Trading Session

On Friday, reports highlighted that HCWB surged after reporting stronger quarterly results. The company highlighted progress across its autoimmune pipeline. Sentiment improved after the biotech company advanced a licensing deal and reaffirmed clinical milestones.

Quarterly Financials and Pipeline Milestones

For the first quarter, HCW reported earnings per share of 37 cents. Quarterly sales reached $6.54 million, up from $5,065 a year ago. The company completed an exclusive worldwide licensing agreement with Trimmune for the in vivo rights for HCW11-006. HCW expects preliminary clinical data readouts for HCW9302 in alopecia areata in the first half of 2026. CEO Hing C. Wong stated, "HCW9302 was selected as the lead product candidate for the Company's autoimmune program because it has demonstrated relatively high IL-2Rα affinity and sustains serum exposure, which implies it has a strong profile for the treatment of autoimmune disorders."

Lingering Going Concern Risks

Despite pipeline progress, substantial doubt remains about the company's ability to continue as a going concern without funding. HCW reported cash and equivalents of $1.23 million, down from $1.95 million a year ago.

Critical Levels to Watch for HCWB Stock

Even after the pullback, HCWB is still trading well above its short-term trend gauges—about 132.3% above the 20-day SMA (43 cents) and 114.5% above the 50-day SMA (46 cents)—which tells you the recent move has been fast and extended. At the same time, the longer trend remains pressured, with price still 54.5% below the 200-day SMA ($2.17). RSI is the cleanest momentum read here: at 82.75, it's firmly overbought, meaning the stock has been moving up so quickly that it's vulnerable to sharp snapbacks and profit-taking.

HCWB Price Action: HCW Biologics shares were down 19.09% at $0.98 during premarket trading on Monday.