Acadia Stock Rallies On Big FDA Approval

ACAD stock is on track for its best day since Aug. 9

Managing Editor
Jun 29, 2018 at 9:57 AM
facebook X logo linkedin

ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD) stock is up 11.5% to trade at $16.80, after the Food and Drug Administration (FDA) approved new capsule dosing formulation and tablet strength for Nuplazid, the company's treatment for Parkinson's disease. ACAD is now pacing for its best day since Aug. 9. 

Today's surge runs counter to ACADIA Pharmaceuticals stock's longer-term trend. Heading into today's trading, the equity was down 50% as of yesterday's close. In fact, the shares have been lingering near four-year-low territory since a scathing CNN report on Nuplazid in early April. Plus, today's upside gap is being contained by familiar resistance at the 50-day moving average.

Nevertheless, analysts have kept the faith in the drugmaker. All four of the brokerages in coverage rate ACAD a "strong buy." What's more, the stock's average 12-month price target of $47.29 is a whopping 180% premium to the stock's current perch.

Short sellers, on the other hand, have been ramping up the skepticism on ACAD. Short interest increased by 20% in the most recent reporting period to 15.21 million shares, the most since September. This represents almost 16% of ACAD's total available float, and six times its average daily trading volume. Some of today's gains could be a result of the weaker bearish hands throwing in the towel.

Some of these shorts may have initiated options hedges to guard against any upside risk. The out-of-the-money July 18 call saw the largest increase in open interest during the last 10 sessions, and data from Trade-Alert points to buy-to-open activity.


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