Drug Data Drives Genocea Biosciences Inc (GNCA) Higher

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

Mar 31, 2016 at 10:32 AM
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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.

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