Opko Health Stock Volatile Again After SEC Settlement

OPK stock has made some massive moves recently

by Karee Venema

Published on Dec 28, 2018 at 10:08 AM
Updated on Dec 28, 2018 at 10:10 AM

The shares of Opko Health Inc. (NASDAQ:OPK) are up 28.1% to trade at $3.31, after the biotech's Chairman and CEO Philip Frost agreed to a $5.52 million settlement with U.S. Securities and Exchange (SEC) over a civil suit alleging penny stock "pump-and-dump" schemes. Opko Health was also fined.

It's been a volatile stretch for the stock, per its 120-day historical volatility of 88%, which registers in the elevated 97th annual percentile. In fact, the shares had a one-day gain of 20.6% as recently as Nov. 12, but also dropped 11.5% back on Nov. 9. Plus, OPK slid to an eight-year low of $2.34 yesterday.

This negative price action has certainly rewarded short sellers, who have started closing out of their winning bets. Short interest fell 6.1% in the most recent reporting period, but the 62.29 million OPK shares still sold short accounts for one-fifth of the stock's available float, or 14.8 times the average daily pace of trading.

Elsewhere on Wall Street, just three analysts cover Opko Health and their opinions of the drug stock vary, with one maintaining a "strong buy," one a "hold," and one a "strong sell." The average 12-month price target, meanwhile is perched squarely at $10 -- a 250% premium to OPK stock's current perch.


a schaeffer's exclusive

5 NEW STOCK PICKS

We're celebrating 38 years with this FREE insider report!


 
 

Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


What's Next for the American Wealth Gap
Porter Stansberry is predicting a major change in the American economic system.
RBS Stock Rises on New CEO Appointment
Alison Rose will be the first woman to serve as CEO to a major British lender
2 Energy Stocks Snap Back After Heavy Losses
Energy stocks CRC and MDR are rallying back from brutal selling earlier in the week
How the 2020 Election Will Affect the U.S. Economy
The 2020 election could see some major changes in the American economic system.