NewLink Genetics Stock Tanks After Earnings, Bear Note

Almost all analysts in coverage sport a pessimistic outlook toward NLNK

Emma Duncan

Managing Editor

Aug 1, 2018 at 9:42 AM

NLNK

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.

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