NewLink Genetics Stock Tanks After Earnings, Bear Note

Almost all analysts in coverage sport a pessimistic outlook toward NLNK

Managing Editor
Aug 1, 2018 at 9:42 AM
facebook twitter linkedin

Biotechnology concern NewLink Genetics Corp (NASDAQ:NLNK) is down 20% this morning at $3.00 -- a fresh record low -- after brokerage firm Stifel downgraded the stock to "hold" from "buy" and slashed its price target in half to $4. The bear note comes just after the company yesterday reported a second-quarter loss of $0.47 per share, and said it's completed an organization realignment that reduced its headcount by 30%.

From a broader perspective, NewLink Genetics stock has been on a long-term downtrend, already having shed 53% year-to-date before today. Back in September, the equity traded as high as $19.30. As such, Stifel is far from the only in coverage sporting a pessimistic outlook toward NLNK, with four of the five brokerage firms following the stock maintaining a tepid "hold" recommendation.

Short interest on NewLink stock dropped more than 22% during the most recent reporting period, but still represents nearly 6.4% of the stock's total available float. At the security's average daily trading volume, it would take shorts just over a week to buy back their bearish bets. Of course, the stock has landed on the short-sale restricted list today.


Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 



Special Offers from Schaeffer's Trading Partners