Q2 STOCKS TO BUY

Pharma Stock Down Despite 'Clinically Meaningful' FDA Nod

Cantor Fitzgerald's $14 price target is double CYTK's current price

Digital Content Manager
Jan 22, 2019 at 10:44 AM
facebook X logo linkedin


The shares of Cytokinetics, Inc. (NASDAQ:CYTK) are down 1.3% at $6.76 in early trading, reversing pre-market gains, despite the Food and Drug Administration's (FDA) sign-off on the "Six Minute Walk Test" (6MWT) as the primary endpoint for a reldesemtiv registration program among patients with spinal muscular atrophy (SMA) who have maintained ambulatory function. The biotech company expects to begin additional studies of reldesemtiv in the first quarter.

Cantor Fitzgerald weighed in, calling the FDA nod "clinically meaningful," as "the 6MWT has been used for the FDA approval of a number of drugs." As such, the analyst maintains an "overweight" rating and $14 price target -- more than double CYTK's current price, and on pace with the consensus 12-month price target among Wall Street. Likewise, CYTK sports three "strong buy" opinions, compared to just one "hold."

CYTK stock gapped lower in November 2017, after the firm abandoned its treatment for amyotrophic lateral sclerosis (ALS), or Lou Gehrig's disease. The shares haven't recovered from that drop, with rebound attempts capped at the $10 area. More recently, the equity touched a three-year low of $5.90 on Dec. 27, and a subsequent bounce was halted at its 200-day moving average.

Short interest is down 9.8% in the past reporting period, but there's still plenty of pessimism surrounding CYTK stock. Currently, the 2.6 million shares sold short represent 5% of the stock's available float. It would take almost two weeks for traders to buy back their bearish bets, at the equity's average daily trading volume. However, these skeptics have little reason to abandon ship yet, considering the stock's struggles on the charts of late.

In the options pits, CYTK's Schaeffer's put/call open interest ratio (SOIR) of 1.17 sits in the 85th percentile of its annual range, suggesting that short-term options players are more put-heavy than usual right now. Most popular is the in-the-money February 10 put, with just over 600 contracts outstanding.

 
 

“Buy This Stock Now!” - Expert Who Called 11x On TSLA

He called a rare 11x on Tesla…

But now, thanks to Elon & Trump’s new alliance…

He says there’s a new opportunity that could be 1,000x BIGGER than Tesla – and it could completely revolutionize a $23 Trillion market.

It’s trading for less than $5 per share right now…

But it won’t be under the radar for long.

Discover The 1,000x Bigger Elon Opportunity Here

GRAND SLAM COUNTDOWN

 
 

Featured Articles from Trusted Partners:

👀Learn How Dividends Create Passive Income for Life
Receive $200 Off Motley Fool Epic. The Motley Fool Epic $299 discounted offer is based on $499/year list price. Introductory promotion for new members only. Take control of your money and your portfolio with Motley Fool Epic.

💵New Income System Could Pay You $4,243 Monthly
You could collect an average of $4,243 per month starting as early as next week with a new payout system for income investors. New registrations are being accepted for investors who want to be in a position to start with their first payout next week.

🚀Easy 92% Crypto Dividends (No Coins Required)
COIN stock doesn't pay a dividend... But there's actually a new way to collect a massive dividend that's indirectly based on the stock and offers a terrific monthly income (currently yielding nearly 92% on a forward basis).

🤝Free Advisor Match with Wiseradvisor.com
Don't leave your retirement to chance! Get matched with a trusted financial expert for FREE and make the most of your tax refund. Get started now.

⚠️Dennis Quaid's #1 Warning for Americans
Here's the thing: life doesn't come with guarantees. The economy shifts, markets stumble, and years of hard work could slip through your fingers like sand. But it doesn't have to be that way for you. So request a free copy of this Gold & Silver Guide that will arrive right to your doorstep when you act now.

 

 
 

Follow us on X, Follow us on Twitter