The stock could be headed toward its worst day ever
Solid Biosciences Inc (NASDAQ:SLDB) could be on track for its worst day ever, after the life sciences company reported disappointing preliminary data for its Duchenne Muscular Dystrophy (DMD) gene therapy treatment. The study includes a planned dose escalation, and the company plans to move forward with a higher dosage.
In reaction to this early data, SLDB is bracing for a 72.9% drop this morning, and is set to open at an all-time low of $6.01 per share. If these pre-market losses hold, they would surpass the stock's 64.6% plunge on March 15 as Solid Biosciences' biggest one-day drop on record. Heading into today's trading, the equity was already down 16.6% year-to-date, and closed last night at $22.34.
One group of traders is cheering today's expected plunge. Short interest on SLDB jumped 23.2% in the two most recent reporting periods to a record 2.97 million shares. These bearish bettors will likely be sidelined until early next week, with the equity all but certain to land on the short-sale restricted list out of the gate.
Analysts have yet to weigh in on SLDB stock, but a round of bear notes could be on the horizon. Currently, three of six covering brokerages maintain a "strong buy" on the security, while the average 12-month priced target sits all the way up at $43.33.