AAL

FDA Hold Has ZFGN Eyeing Worst Day in Years

Zafgen stock is plummeting on concerns about its diabetes treatment

Nov 26, 2018 at 10:17 AM
facebook X logo linkedin


Shares of Zafgen Inc (NASDAQ:ZFGN) are getting destroyed this morning, after the Food and Drug Administration (FDA) put a clinical hold on a trial of the company's experimental diabetes treatment, citing heart safety risks. The company plans to request a meeting with the FDA to go over next steps for ZGN-1061.

Zafgen stock was last seen 44.5% lower at $5.05 -- in territory not charted since January. The shares are pacing for their worst day since July 2016, and are back below their 200-day moving average for the first time in 2018. Prior to today, the equity had been up about 100% year-to-date, with pullbacks contained by its 32-week moving average.

ZFGN is also on the short-sale restricted list today. Nevertheless, several shorts are likely cheering today's plummet. Short interest on the stock represents more than a week's worth of trading, at Zafgen's average daily volume.

Meanwhile, the equity could be vulnerable to negative analyst notes. Half of the four analysts following the stock maintain "strong buy" opinions, and the average 12-month price target of $13.20 represents upside of more than 160% from current levels

 

Two High-Octane Trade Ideas. One Simple Goal: Intraday Profits.

Dynamite Day Trading Signals delivers two same-day options trades every week — powered by proprietary intraday analysis and 43+ years of trading expertise.

But this isn’t just another stream of alerts.

It’s a structured plan with clear entry and exit points – designed for traders who want to act fast, trade smart, and wrap up gains before the closing bell.

No guesswork. No overnight exposure – Just two well-researched setups per week — whether you prefer buying premium or selling it.

And the results speak for themselves: subscribers have locked in +245.8% total profit over the last six months (since inception!).

👉 Start your one-month trial now for just $10, and be ready for the next trade alert.