Barclays Downgrade Keeps Pressure On PTC Therapeutics Stock

PTCT options traders have been call heavy over the past 10 weeks

Managing Editor
Apr 4, 2018 at 9:47 AM
facebook X logo linkedin

Shares of PTC Therapeutics, Inc. (NASDAQ:PTCT) are trading lower this morning after Barclays downgraded the stock to "underweight" from "equal weight" while simultaneously raising its price target to $26 from $24. An analyst from the firm said the company's growth potential is already priced into the share price. PTCT was last seen down 3.7% at $25.16 in early trading. 

Despite its recent decent from its March 21 two-year high of $33.22, PTC Therapeutics stock is still up 50% in the past 12 months, though it recently fell below the 50-day moving average. Analyst sentiment surely isn't optimistic, with five of the six following PTCT carrying "hold" or worse recommendations.

Meanwhile, sentiment has been seemingly bullish in the options pits. Currently, data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows PTCT with a 50-day call/put volume ratio of 3.88, ranking in the 73rd percentile of its annual range. This indicates that calls have been bought over puts at a faster-than-usual clip during the past 10 weeks, though volume has been muted on an absolute basis.

This call bias could be related to elevated short interest levels, since short interest represents more than 20% of the stock's total available float. At the stock's average daily trading volume, it would take more than a week for the shorts to cover their bearish bets. In other words, short sellers may be using call options to hedge against unexpected upside.


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 calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI