TESARO Stock Sinks to New Lows After Analyst Notes

Tesaro stock is currently short-sale restricted

Managing Editor
Jan 2, 2018 at 3:14 PM
facebook twitter linkedin

TESARO Inc (NASDAQ:TSRO) stumbled to the finish line in 2017, shedding 2% in December alone. To make matters worse, the biotech stock is starting off 2018 reacting to a flurry of bearish analyst attention -- sending the shares even deeper into the red.

Piper Jaffray and Cowen and Company both issued price-target cuts to $80 for Tesaro this morning. As such, TSRO stock has dropped 8.8% at last check to trade at $75.61, while touching a 19-month low of $74.57 earlier today. TSRO shares have shed nearly 44% year-over-year, and their 30-day moving average has kept a lid on any breakout attempts since mid-October. 

However, analysts remain relatively optimistic. Of the 17 brokerage firms covering TSRO, nine rate the stock a "buy" or "strong buy." Furthermore, TSRO's average 12-month price target of $140.47 is an 86% premium to the equity's current perch. This suggests the biotech stock could be overdue for both downgrades and further price-target cuts.

In the options pits, calls have been bought to open over puts at a faster-than-usual clip, albeit amid relatively low absolute volume. Data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) reveals a 10-day call/put volume ratio of 8.96, which ranks 3 percentage points from a 52-week high.

With 21% of the stock's float sold short, though, some of this is likely at the hands of shorts hedging against any upside risk. Today, however, TSRO stock is on the short-sale restricted list, which may explain why put volume has surged to three times the average intraday rate.


If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!



Special Offers from Schaeffer's Trading Partners