The brokerage firm also started coverage with an "outperform" rating
Wells Fargo initiated coverage on Crispr Therapeutics AG (NASDAQ:CRSP) with an "outperform" rating and a $65 price target -- a more than 75% premium to last night's close. In reaction, CRSP stock is up nearly 0.8% to trade at $37.20.
This upbeat outlook echoes the broader trend seen on Wall Street. Outside of a rare bear note a few weeks back, the majority of analysts in coverage maintain a "buy" or better rating on CRSP. Plus, the average 12-month price target sits all the way up at $67.69.
Elsewhere on Wall Street, though, sentiment is much more skeptical. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), for instance, CRSP stock's 10-day put/call volume ratio of 1.63 ranks in the 92nd annual percentile, meaning puts have been bought to open over calls at a quicker-than-usual clip.
Short sellers have been ramping up their exposure to the gene-editing stock, too. Short interest surged 16.4% in the most recent reporting period to more than 3 million shares -- a new record high. This accounts for 13.1% of Crispr Therapeutics' available float, or 4.7 times the average daily pace of trading.
Looking at the charts, the equity has been in a long-term downtrend, off 49.7% from its May 24 record high of $73.90. More recently, CRSP shares fell below their 320-day moving average. This trendline served as a short-term layer of support last week, but could now switch to resistance.
