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B. Riley Is Buying This Drugmaker After Its Sell-Off

GTHX shares are trying to break through a former area of resistance

Feb 11, 2019 at 2:15 PM
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Cancer treatment specialist G1 Therapeutics (NASDAQ:GTHX) has seen its stock price decline precipitously since its Sept. 11 peak of $69.57, bottoming at $15.21 on Dec. 21 following a bear gap sparked by disappointing trial data from the company's cancer drug, trilaciclib. Since then, the shares have been steadily climbing the charts, trading up 2.3% at $21.73 today, on pace for their highest close since that gap, thanks to another bullish analyst note.

Specifically, B. Riley began coverage on GTXH with a "buy" rating and $55 price target, representing a 153% runway from current levels. This upbeat attention only mirrors the broader sentiment seen across the Street, where six of seven analysts say to buy the security. What's more, the average 12-month price target is all the way up at $69.50.

On a more negative note, short interest has been increasing on the equity since early December. The 2.37 million shares held by short sellers equated to 8.8% of the float, or 6.7 days' worth of buying power, based on average daily trading volumes.

Looking closer at the charts, G1 Therapeutics stock is attempting to push past its 40-day moving average, set to close above the trendline again today. The shares' rally attempts back in November and December were neatly blocked by this moving average.

gthx stock price

 

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