The FDA fast-tracked ITCI's schizophrenia drug
U.S. stocks are trading cautiously higher this afternoon, with volume quiet ahead of the Thanksgiving holiday. Among the names making big moves are tech stock Marvell Technology Group Ltd. (NASDAQ:MRVL), plus biopharmaceutical companies DBV Technologies SA (NASDAQ:DBVT) and Intra-Cellular Therapies Inc (NASDAQ:ITCI). Here's a quick look at what's moving shares of MRVL, DBVT, and ITCI.
Marvell Jumps on Cavium Buyout
Marvell Technology is pulling the chip sector higher after announcing a $6 billion deal to buy Cavium (CAVM). MRVL is up 5% at $21.31, and earlier set a new six-year high of $21.58. Marvell shares have now gained more than 53% on the year, and they've taken out their prior 2017 peak of $21.08 -- a high set as recently as Nov. 6, right after The Wall Street Journal initially reported the potential CAVM tie-up.
Meanwhile, with MRVL earnings due out on Tuesday, Nov. 28, short-term options on the chip stock are relatively expensive. According to Trade-Alert, 30-day at-the-money implied volatility on MRVL stands at 33.3%, in the 70th percentile of its annual range.
DBVT Soars on Upbeat Drug Data
The U.S.-traded shares of DBVT are on the rise after the company reported that its peanut allergy drug, Viaskin Peanut, met the primary safety goal of a late-stage study. The stock is trading up 8.4% at $25.39, and is on pace to close above its 20-day moving average for the first time since its Oct. 23 bear gap -- prompted by poorly received efficacy data on Viaskin Peanut -- which carried the stock to a new two-year low of $21.51 less than a week ago, on Nov. 14.
Since that late-October sell-off, most analysts have remained bullish on DBVT, with seven brokerage firms out of nine still calling the stock a "buy" or better. However, since Oct. 20, the average 12-month price target on the stock has been slashed to $37.89 from $57.75.
ITCI Gets FDA Fast-Track Boost
Intra-Cellular Therapies stock is higher after its schizophrenia drug, lumateperone, received fast-track status from the Food & Drug Administration (FDA). ITCI was up 6.1% at $16.25 at last check, but upside today has been capped by the stock's formerly supportive 50-day moving average.
We're likely seeing a bit of a short-squeeze rally playing out for ITCI today. Short interest currently represents 14.3% of the stock's total available float, and at ITCI's average daily trading volume, it would take exactly 10 days for the shorts to cover all of their bearish bets.