3 Healthcare Stocks on the Rise

APVO is one of the hottest stocks on the Street this morning

Sep 1, 2017 at 10:02 AM
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U.S. stocks are trading mostly higher this morning, despite lackluster August jobs data. Among specific stocks in focus are hospital operator Tenet Healthcare Corp (NYSE:THC), healthcare name Dr.Reddy's Laboratories Ltd (ADR) (NYSE:RDY), and biotech Aptevo Therapeutics Inc (NASDAQ:APVO). Here's a quick look at what's boosting shares of THC, RDY, and APVO.

Wall Street Cheers Tenet Healthcare CEO Announcement

Tenet Healthcare stock is up 0.1% at $17.19, folowing news the company's chairman and CEO Trevor Fetter will step down by March. Still, the shares have given back 27% during the past 12 months, and hit an eight-year low of $12.54 last month. 

This comes as short sellers have been pounding THC stock, with short interest skyrocketing over the past year, including an 18% surge in the last two reporting periods. The 32 million Tenet Healthcare shares now sold short is the highest reading on record, and represents roughly two-fifths of the equity's float. 

Patent Ruling Boosts Dr. Reddy's Stock

A favorable patent ruling for the company's generic version of Indivior's Suboxone has shares of Dr. Reddy's Laboratories gaining this morning, last seen 6.2% higher at $34.18. The stock was in need of a positive catalyst, as it's down 26% year-over-year, losing roughly half its value since its 2015 peak of $68. A continued rise for RDY could garner some upbeat attention from analysts, since it has yet to score a single "buy" recommendation. 

Aptevo Therapeutics Stock Torches Short Sellers

Aptevo Therapeutics has soared 60% to trade at $2.13, after the company said it plans to develop its own prostate cancer drug. Plus, it's selling three drugs to Saol Therapeutics for $65 million. The penny stock has been sliding in recent months, touching a record low of $1.15 earlier this week. As such, today's price action is sure to shock a number of short sellers. During the last two reporting periods, these bearish bets increased by 30%. 

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