Spiraling Drug Stock at Risk for Downgrades

PRTA hit a four-year low earlier

Apr 23, 2018 at 10:55 AM
facebook X logo linkedin


Prothena Corporation (NASDAQ:PRTA) said it is discontinuing the development of its drug NEOD001, used to treat patients with AL Amyloidosis. The end of the program comes after the company's lead drug failed in both a mid-stage study and a late-stage trial, and PRTA stock has plummeted 68.1% to trade at $11.76 -- earlier tagging a four-year low of $11.05.

The shares are easily on track for their worst day ever, but Prothena was struggling on the charts heading into today's trading -- down almost 50% from their late-September annual high of $70 to last Friday's close at $36.84.

Recent downside has come amid increased selling pressure from shorts. Short interest shot up more than 31% in the two most recent reporting periods to 4.33 million shares -- accounting for 11.3% of the stock's available float. While short sellers are likely cheering today's bear gap, they will be sidelined for the time being, with PRTA on the short-sale restricted list.

However, the spiraling stock is now at risk for a round of bearish brokerage notes, which could spark even more selling. All but one of the nine analysts following Prothena stock maintain a "buy" rating -- with not one "sell" recommendation on the books -- and the average 12-month price target sits all the way up at $73.09.

 

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