Cara Therapeutics Inc (NASDAQ:CARA) shares are trading higher by 11.5% to 32 cents during Thursday's session. The company earlier announced it engaged Piper Sandler & Co. as a financial advisor to explore strategic alternatives to enhance shareholder value.

CEO Christopher Posner stated that the company aims to evaluate various options while implementing a cost-containment and cash conservation plan. There is no guarantee that this process will lead to any agreements or transactions, and further updates will only be provided if the Board approves a specific action or if legally required.

As of March 31, Cara Therapeutics said the company had about $70 million in cash and marketable securities.

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Should I Sell My CARA Stock?

Whether to sell or hold a stock largely depends on an investor's strategy and risk tolerance. Swing traders may sell an outperforming stock to lock in a capital gain, while long-term investors might ride out the turbulence in anticipation of further share price growth.

Similarly, traders willing to minimize losses may sell a stock that falls a certain percentage, while long-term investors may see this as an opportunity to buy more shares at a discounted price.

Investors may also consider market dynamics. The Relative Strength Index can be used to indicate whether a stock is overbought or oversold. Cara Therapeutics stock currently has an RSI of 47.81, indicating neutral conditions.

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