2 Biotech Stocks Struggling Today

INSY stock is pacing for its eighth straight loss

Managing Editor
Mar 19, 2018 at 10:11 AM
facebook X logo linkedin


Cidara Therapeutics Inc (NASDAQ:CDTX) stock is lower today, down 22% to trade at $6.09, despite the biotech company reporting its anti-fungal drug Rezafungin acetate met the main goals of a mid-stage study. Cidara will advance this drug to late-stage trials in the latter half of the year. Even amidst the seemingly upbeat news -- and despite being up more than 20% ahead of the bell -- CDTX stock is now on track for its worst single-day performance since February 2017, and is within a stone's throw from its Aug. 16 record low of $5.60. 

Analysts are firmly on the bullish bandwagon. Of the six brokerages covering CDTX, five rate it a "strong buy." Furthermore, the equity's average 12-month price target of $14.19 represents a 133% premium to its current perch. Continued technical underperformance could prompt analyst downgrades and price-target cuts. 

In addition, Insys Therapeutics Inc (NASDAQ:INSY) stock is also staring at a deficit this morning, down 1.2% to trade at $6.36. The company issued a statement regarding Friday's federal indictment of five New York doctors charged with taking kickbacks from Insys in exchange for prescribing fentanyl-based Subsys. Insys said it will cooperate with authorities to resolve the issues of "inappropriate actions" by the former employees.

INSY shares have shed 34% in 2018 alone, and have been guided lower by their descending 20-day moving average since late January. The equity is currently on track for an eight-day losing streak, and last Friday locked up its worst weekly performance since Jan. 12, and its first three-week losing streak since August. 

It's no surprise, then, that the drug stock is heavily shorted. Short interest increased by 25% since early December, and the 12.18 million shares sold short represents a whopping 65% of INSY's total available float. 

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI