Short Sellers Cash In On Shocking Biotech Sell-Off

Short interest on the stock popped in the last two reporting periods

Josh Selway

Mar 28, 2018 at 9:54 AM

NASDAQ:EDGE

Biotech stock Edge Therapeutics Inc (NASDAQ:EDGE) closed Tuesday's session at $15.59, after a big rally to start 2018. In fact, the shares had nearly doubled over the past year. But now those gains seem like a distant memory, with EDGE getting absolutely destroyed today, down 90% at $1.60 and earlier falling to a record low of $1.50.

The sell-off was sparked by news the company is discontinuing its late-stage study for its brain hemorrhage treatment. This news and subsequent price action could be catching analysts off guard, since the two brokerage firms tracking EDGE stock had "buy" ratings and an average 12-month price target of $17.

A number of short sellers made a move just in time, however. In the last two reporting periods alone, short interest on the biotech jumped 13.7%, and now represents almost a week's worth of buying power, based on average daily volumes. Of course, the stock is short sale restricted today.

Follow @Schaeffers

Two High-Octane Trade Ideas. One Simple Goal: Intraday Profits.

Dynamite Day Trading Signals delivers two same-day options trades every week — powered by proprietary intraday analysis and 43+ years of trading expertise.

But this isn’t just another stream of alerts.

It’s a structured plan with clear entry and exit points – designed for traders who want to act fast, trade smart, and wrap up gains before the closing bell.

No guesswork. No overnight exposure – Just two well-researched setups per week — whether you prefer buying premium or selling it.

And the results speak for themselves: subscribers have locked in +245.8% total profit over the last six months (since inception!).

👉 Start your one-month trial now for just $10, and be ready for the next trade alert.