3 Drug Stocks Making Monster Moves

An analyst at Baird lowered the firm's price target on JNCE to $20 from $35

Managing Editor
Jun 4, 2018 at 3:18 PM
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Stocks are trading higher this afternoon, with blue chips Apple (AAPL) and Microsoft (MSFT) headlining the action by hitting fresh record highs. The drug sector is also making noteworthy moves today, as the American Society of Clinical Oncology (ASCO)'s annual conference continues, where companies have released updates on cancer treatments. Three other names in focus are Jounce Therapeutics Inc (NASDAQ:JNCE)Vaxart Inc (NASDAQ:VXRT), and Deciphera Pharmaceuticals Inc (NASDAQ:DCPH). Below we will take a closer look at how shares of JNCE, VXRT, and DCPH have been faring on the charts.

Preliminary Drug Data Pushes Jounce Stock to New Lows

Jounce Therapeutics stock fell to a record low of $6.92 earlier, after the company reported preliminary data on a mid-stage study that is testing its lead drug candidate JTX-2011. An analyst at Baird called the response rate of the trial "modest," and cut the firm's price-target on JNCE to $20 from $35. The pharmaceutical concern is down 36% at $7.14 at last check. 

Ahead of the ASCO conference, analysts following JNCE stock were optimistic. Of the five firms covering the drug name, four rate it a "strong buy." Further, the biotech's average 12-month price target of $16.33 comes in at a whopping 129% premium to current levels.

The drug stock is heavily shorted, with the 4.4 million shares sold short representing 32% of the available float. At JNCE's average daily trading volume, it would take just under two weeks for shorts to cover their bearish bets.

Vaxart Stock Plunges Following Failed Trial

Extending its long-term trend lower, Vaxart stock fell to a record low of $4.11 earlier today, after the company reported its antiviral teslexivir failed to meet its main goal in a study. The stock has struggled this year, shedding over 31% year-to-date, while repeatedly failing to break above the 120-day and 200-day moving averages. VXRT is down 18.2% at $4.28 at last glance.

DCPH Surges to Record High on Positive Drug Data

Deciphera Pharmaceuticals stock is soaring, up 43% at $37.14, and fresh off a record high of $38.32, after the company reported upbeat data in an early stage trial for its cancer drug DCC-2618. This isn't good news for everyone, though, since the equity remains heavily shorted. Short sellers are holding almost 13% of the total float, which equates to nearly 12 days worth of buying power, going by average daily volumes.

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