The Pharmaceutical Stock Soaring After Cholesterol Drug Data

Twilio stock is surging after the company upped its revenue guidance

Aug 8, 2017 at 1:16 PM
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U.S. stocks are trading higher today, with the Dow notching a 10th straight record high. Among the names in the spotlight are cloud communications platform Twilio Inco (NYSE:TWLO),pharmaceutical stock Esperion Therapeutics Inc (NASDAQ:ESPR), and food and beverage company Dean Foods Co (NYSE:DF). Here's a quick look at what's moving shares of TWLO, ESPR, and DF.

Twilio Raises Revenue Forecast

Twilio stock is up 11.4% to trade at $34, after the company reported strong earnings and raised its fiscal-year revenue forecast. Since touching a record low of $22.80 in early May, the stock has rallied close to 50%, and is now staring up at the $35 area, which has stalled several rally attempts since early December. 

TWLO's rise could be the result of a short squeeze, as short interest on the stock has grown nearly 20% over the past month and now accounts for 33% of its total float. At Twilio stock's average pace of trading, it would take more than 16 sessions to buy back the shorted shares.

Upbeat Drug Data Sends Esperion Therapeutics Soaring

Esperion Therapeutics stock is up a whopping 25% to trade at $56.32 -- and earlier notched a nearly two-year high of $56.49  -- after the pharmaceutical company's cholesterol-lowering drug succeeded in a mid-stage trial. Up close to 350% year-to-date, ESPR has nearly quintupled from its November low.

Still, only half of the six analysts following the stock rate it a "buy" or better, leaving the door open for upgrades to lure even more buyers to the table. Plus, it would take more than two weeks to buy back all the shorted Esperion shares, at ESPR stock's average daily trading volume -- ample room for a short squeeze.

Dean Foods Stock Sinks After Earnings

Weaker-than-expected earnings has Dean Foods stock down 18.3% to trade at $12.22 -- ranking it among the worst stocks on the New York Stock Exchange today. Down more than 43% year-to-date, the food and beverage stock hit a five-year low of $11.90 earlier this morning.

More than half of the analysts following DF rate it a "strong buy," and today's bear gap could attract bearish analyst attention. Option buyers were certainly growing wary ahead of earnings, as evidenced by DF's 10-day put/call volume ratio of 13.81 on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), -- higher than 86% of all other readings from the past year.

 

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