ARRY shorts could be left scrambling as the stock pops pre-market
Boulder-based Array Biopharma Inc (NASDAQ:ARRY) is attracting pre-market attention this morning, after its BRAFTOVI drug, in combination with MEKTOVI and cetuximab, was given a Breakthrough Therapy Designation from the U.S. Food and Drug Administration (FDA) for the treatment of mutant metastatic colorectal cancer. The FDA nod means the drug development and review process will be expedited.
ARRY is up 8.7% in electronic trading, after closing Monday's session at $15.07. The stock is in the process of bouncing from support at its 200-day moving average, which previously contained its May lows around the $13 level.
Despite a choppy price trend in 2018, ARRY was up 17.7% year-to-date through last night's close. And based on the security's early momentum, the biopharmaceutical concern looks set to rally back above its historically significant 160-day moving average, as well.
If short sellers are rattled by Array Biopharma stock's surge, a short-covering rush could translate into a sustained move higher. Short interest accounts for 8.4% of the equity's float, or seven times ARRY's average daily trading volume. This leaves the stock well-positioned to capitalize on an unwinding of these bearish bets.