Analysts, Shorts Divided on Stemline Therapeutics, Inc. (STML)

Stemline Therapeutics Inc (STML) is a favorite among analysts, but short sellers aren't convinced

by Alex Eppstein

Published on Dec 31, 2014 at 2:28 PM
Updated on Jun 24, 2020 at 10:16 AM

A number of biotech stocks are rallying this afternoon, including Stemline Therapeutics Inc (NASDAQ:STML). At last check, shares of the cancer treatment developer are up nearly 9% at $17.22 -- but remain 12.2% lower year-to-date. Meanwhile, a look around Wall Street reveals little in the way of a consensus opinion.

On the one hand, the brokerage bunch is extremely bullish toward STML, with 100% of covering analysts doling out a "strong buy" rating. Additionally, the equity's consensus 12-month price target of $54.60 more than triples the current stock price. Last week, Aegis Capital cut STML's target price by $7 to $68 -- but that still represents a premium of almost 50% to STML's record high of $47.25, touched last October.

On the flip side, short sellers have been betting on downside for STML. Roughly one-tenth of the security's float is sold short, which would take about nine days to buy back, at typical daily trading volumes. In fact, current short interest levels are just a chip-shot away from the all-time peak touched earlier this month.

Looking ahead, Stemline Therapeutics Inc (NASDAQ:STML) is scheduled to make an appearance at the J.P. Morgan Healthcare Conference on Jan. 15 in San Francisco. This event could provide a catalyst, either to the upside or downside. What's more, an ensuing shift in sentiment -- in the form of either bearish brokerage notes or short-covering activity -- could further intensify any such move.


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