4 Small-Cap Biotechs Making Big-Time Moves

Four biotech names in "penny stock" territory are making big moves today

by Josh Selway

Published on Nov 12, 2015 at 3:08 PM

While the energy and retail sectors have been getting most of the Street's attention this week, you can always count on biotechs for some wild price action. Today, we'll look at four names that are trading under $5, or in "penny stock" territory. Below is a brief analysis on biotech winners Eyegate Pharmaceuticals Inc (NASDAQ:EYEG) and Harvard Apparatus Regenerative Tech Inc (NASDAQ:HART), and losers Derma Sciences Inc (NASDAQ:DSCI) and Nobilis Health Corp (NYSEMKT:HLTH)

EYEG is up 22.9% at $3.97, after the company this morning reported quarterly results. Following the release, Maxim initiated coverage on the stock with a "buy" rating and an $11 price target -- territory not seen since the stock spiked in July. One group of traders can't be happy with today's developments. Specifically, short interest jumped by more than 20% during the two most recent reporting periods, and these newly initiated positions may now be underwater. Technically speaking, since shares of Eyegate Pharmaceuticals Inc hit the Street in mid-February, they've dropped one-third of their value. 

While EYEG's gains are impressive, HART is blowing it out of the water by adding 151% to trade at $1.58. The equity is getting a lift after the company announced "significant" results for its bioengineered implant platform. Still, the stock has a long way to go to catch up with the broader market. Harvard Apparatus Regenerative Tech Inc has underperformed the S&P 500 Index (SPX) by more than 53 percentage points over the past two months. 

On the other side, DSCI is down 28.1% at $4.03, and earlier hit a six-year low of $3.85, on news the company is exploring a possible sale after it halted development of its only drug. The shares had already given back nearly 40% year-to-date before today's open, and could face more losses in the future. Two-thirds of covering analysts still rate Derma Sciences Inc a "strong buy," leaving the door open for downgrades.

Finally, there's HLTH. After the company announced disappointing preliminary revenues for the third quarter -- as well as a delay to its official earnings release -- the equity has given back 17% to trade at $2.97. Luckily for short sellers, they got in at just the right time. Short interest on Nobilis Health Corp surged by over 50% during the two most recent reporting periods -- though the stock is short-sale restricted today.

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