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Clearside Biomedical Stock Crushes Shorts After Drug Data

It would take shorts more than a week to cover, at the average pace of trading

Mar 5, 2018 at 9:56 AM
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Shares of Clearside Biomedical Inc (NASDAQ:CLSD) are trading up 64.3% at $12.85 -- fresh off a 15-month high of $13.25, and on track for their biggest one-day gain ever. The drugmaker released positive topline data for its treatment on patients with macular edema associated with non-infectious uveitis, which is a build-up of fluid in the eye that negatively impacts vision.

Heading into today's trading, the shares had been chopping lower since topping $10 in late July, and hit a record low of $5.30 on Feb. 9. Short sellers, meanwhile, targeted CLSD stock during its recent technical troubles, with short interest surging 18.6% between the Feb. 1 and Feb. 15 reporting periods.

As such, it's likely a short squeeze is creating even bigger tailwinds for Clearside Biomedical shares. In fact, at the stock's average daily pace of trading, it would take more than a week to buy back these bearish bets.

Analysts, on the other hand, were already bullish on Clearside Biomedical, with all six covering analysts maintaining a "buy" or better rating. Plus, the average 12-month price target of $19.20 represented expected upside of nearly 146% to last Friday's close at $7.82.
 

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