Among today's outperforming drugmakers are Trevena Inc (TRVN), OvaScience Inc (OVAS), La Jolla Pharmaceutical Company (LJPC), and Kite Pharma Inc (KITE)
Though
short sellers continue to pile on biotech stocks, the sector -- along with
airlines -- has weathered
today's storm fairly well. In fact, among the 30 sectors we track at Schaeffer's, the
Market Vectors Biotech ETF (NYSEARCA:BBH) is the top performer, losing less than 1%. Here's a quick look at four drugmakers that have bucked the broad-market trend south this afternoon.
Trevena Inc (NASDAQ:TRVN) has soared nearly 8%, and has advanced 78% year-to-date, thanks to some
recent trial-induced momentum. In fact, the stock yesterday hit an all-time high of $11.94, but was last seen at $10.65. The brokerage bunch certainly respects TRVN's technical tenacity -- as well as its potential to trek even higher. All six analysts covering the security have assigned it a "strong buy" rating.
OvaScience Inc (NASDAQ:OVAS) is outperforming today -- up 3.5% at $17.16 -- but is a long-term laggard, shedding over 61% in 2015. Since late July, the shares have been ushered steadily lower by their 10-day moving average, and -- you guessed it --
short sellers have taken notice. A mind-bending 38.8% of OVAS' float is sold short, equal to 13.4 times its average daily trading levels.
La Jolla Pharmaceutical Company (NASDAQ:LJPC) has more than tripled in value during the past 52 weeks, and it's more of the same today -- with the shares up 3.2% at $34.30. Last Monday, the stock reached a record high of $36.60, as well. That hasn't deterred short sellers from pouncing on the outperformer, as close to 21% of its float is sold short -- or nearly eight days' worth of pent-up buying demand, at LJPC's typical volumes. A capitulation among these bears could fuel the equity's fire.
Finally, Kite Pharma Inc (NASDAQ:KITE) -- which has more than doubled year-over-year -- has added 1.7% to trade at $53.07. For the past couple weeks, the shares have hovered in the $50-$55 range, after flirting with $80 in early August. The brokerage crowd seems to be confident KITE can regain its longer-term upward trajectory, though, as 100% of analysts consider the stock a "strong buy."