fedmeetingcontent

2 Heavily Shorted Healthcare Stocks to Watch Today

Both stocks have a short-interest ratio above 5

Mar 27, 2018 at 10:11 AM
facebook X logo linkedin


Biotech stock AnaptysBio Inc (NASDAQ:ANAB) is trading higher today after the company reported positive mid-stage trial results for its experimental peanut allergy drug. ANAB shares were last seen up 0.3% at $114.21, but that's nothing new. The security has continued to push higher since its huge bull gap back in October, reaching a record high of $134 back on Feb. 20.

Analysts continue to like the equity, with all six in coverage saying it's a buy. In fact, Stifel this morning upped its price target to $152 from $139, saying it only expects data from the peanut allergy drug trials to improve going forward. Jefferies, which has a $145 price target for ANAB, says the trial update removes an overhang for the shares.

Short interest on AnaptysBio remains elevated, though. In the last two reporting periods the number of shares held by short sellers increased by 7.4%, putting 10.4% of the total float in their hands. Going by average daily volumes, it would take more than seven days to cover these positions.

Elsewhere, women's health expert Hologic, Inc. (NASDAQ:HOLX) is also on the right side of breakeven, trading up 1% at $38.03, thanks to news the Food and Drug Administration (FDA) approved the latest updates to the company's 3Dimensions mammography system. While HOLX shares remain roughly 11% lower year-to-date, they've been consolidating atop their August-October lows, hinting at a layer of technical support.

Analysts are bullish on this security, as well. Specifically, 11 of the 16 in coverage have "strong buy" or "buy" ratings. On the other hand, short interest jumped almost 10% in the last two reporting periods, and accounts for 4% of the total float now. While that may not seem substantial, it'd take these bears more than a week to buy back their bets, based on average daily volumes.

 

$40 = 4 Trades That Can Move the Needle

Start your trading week with a ready-to-execute trade hand selected by Schaeffer's very own Senior VP of Research Todd Salamone. 

Our Trade of the Week is backed by 30+ years of experience and will provide you the market insight, research, and trade management you need to act with confidence.

One month. 4 trades. Only $10 per trade!

👉 Click Here to Get Your First Trade Before Monday’s Opening Bell

AGS
 
 
 
 

Follow us on X, Follow us on Twitter