SAGE has shed 11% since the start of the year
Biopharmaceutical concern SAGE Therapeutics Inc (NASDAQ:SAGE) popped higher out of the gate to peak at $149.47 in early trading, after Piper Jaffray initiated coverage on the stock with an "overweight" rating and $206 price target. The brokerage firm's price target implies expected upside of 41.4% upside to Friday's close at $145.68, and it's also north of SAGE's late-January record intraday peak of $195.97.
SAGE Therapeutics stock has been trading mostly sideways since its early December post-earnings bull gap, and entered today's session with an 11.5% year-to-date deficit. However, the stock's 2018 lows have been contained by the $140 level.
Taking a broader view of analyst sentiment, all 12 of the brokerage firms covering SAGE stock sport "buy" or "strong buy" recommendations. This bullish sentiment is echoed by the stock's average 12-month price target of $208.86, which marks a 43.4% premium to last week's close -- roughly in line with Piper Jaffray's new forecast.
Elsewhere, short interest on SAGE rose by 6% during the past two reporting periods, and now represents nearly 9% of the stock's total available float. This supply of short interest represents about 11 times SAGE Therapeutics stock's average daily trading volume.
Looking ahead, SAGE is slated to report its second-quarter earnings before the market opens this Tuesday, Aug. 7. The drug name has ended higher the day after earnings in five of the past eight quarters, with an average single-day move of 4.8% regardless of direction. This time around, the options market is pricing in a steeper-than-usual 7% post-earnings move for SAGE.