Flexion Therapeutics Stock Hits New Lows on Guidance

Three analysts slashed their price targets and one downgraded FLXN stock

Digital Content Manager
Jan 4, 2019 at 10:01 AM
facebook X logo linkedin


Flexion Therapeutics Inc (NASDAQ:FLXN) stock is down 3.2% at $11.94 in early trading, and touched a two-year low of $10.98 out of the gate, after the company announced sub-par full-year revenue guidance -- sparking a round of negative analyst attention. Specifically, Benchmark downgraded FLXN to "hold," while Berenberg cut its price target to $28 from $42, BMO cut its target to $34 from $36, and Needham dropped its target to $36 from $42.

The shares of FLXN have been sliding since their mid-June peak of $29.10. Flexion Therapeutics stock gave up nearly 40% in the fourth quarter, in fact, with recent rebound attempts halted by its 50-day moving average.

Prior to today, FLXN still enjoyed five "strong buy" ratings, with not a single "hold" or "sell" in sight. Plus, the current consensus 12-month price target of $32.13 represents a premium of more than 150% to current levels. Additional downgrades or price-target cuts for underperforming FLXN could exacerbate selling pressure on the shares.

Options bears have already been flocking to FLXN, though, with the stock's Schaeffer's put/call open interest ratio (SOIR) of 0.81 sitting in the high 97th percentile of its annual range. This indicates that short-term option players have rarely been more put-heavy during the past 12 months.

What's more, the 9.44 million shares of FLXN sold short represent an impressive 30.2% of the stock's available float. At the security's average daily trading volume, it would take almost three weeks for traders to repurchase these pessimistic positions. However, as long as FLXN remains in its channel of lower highs and lows, it's unlikely the shorts will hit the exits.

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI