Drug Data Drives Genocea Biosciences Inc (GNCA) Higher

Upbeat data on Genocea Biosciences Inc's (GNCA) genital herpes drug has the stock blazing higher

by Alex Eppstein

Published on Mar 31, 2016 at 10:32 AM
Updated on Jun 24, 2020 at 10:16 AM

Genocea Biosciences Inc (NASDAQ:GNCA) is the biggest gainer on the Nasdaq this morning, blowing up on positive mid-stage trial data on its genital herpes treatment. At last check, the biotech stock has jumped almost 26% to hover at $5.01 -- vaulting it above its 140-day moving average for the first time since August.
Today's bullish gap could have short sellers sweating bullets. Short interest rose more than 10% during the past two reporting periods to roughly 2.4 million shares -- the highest level ever. Now, nearly 11% of GNCA's float is sold short, which would take over three weeks to cover, at the stock's typical trading volume.

It's a far different story among the brokerage bunch. All five analysts following GNCA consider it worthy of a "buy" or better rating. Plus, the stock's consensus 12-month price target of $13 represents a brow-raising 159% premium to current levels.

Today's gains aside, Genocea Biosciences Inc (NASDAQ:GNCA) is a long-term technical laggard. Its year-to-date loss is 5%. Worse yet, since the stock topped out at an annual peak of $16.18 in July, GNCA has surrendered roughly 69% of its value.

Sign up now for Schaeffer's Market Recap to get all the day's big stock movers, must-know technical levels, and top economic stories straight to your inbox.

A Schaeffer's 39th Anniversary Exclusive!

8 Top Stock Picks for 2020

Access your FREE insider report before it's too late!