Puma Biotechnology Stock Soars on Breast Cancer Sales Beat

Several analysts have already raised their price targets on PBYI

by Lillian Currens

Published on Mar 1, 2019 at 9:57 AM

The shares of Puma Biotechnology Inc (NASDAQ:PBYI) are up 40% at $39.10 in early trading, after the drugmaker announced better-than-expected revenue for the fourth quarter. The company also reported sales of its breast cancer drug, Nerlynx, that beat analysts' expectations. The stock is now pacing for its best day since July 2014. 

Today's pop could close PBYI's Nov. 2 bear gap, too -- a drop that caused the equity to hit a six-year low of $17.60. The stock has since more than doubled, and today could take out its 200-day moving average for the first time since early 2018. 

In the wake of Puma's rally, several analysts have already raised their price targets, including Cantor Fitzgerald (to $57), J.P. Morgan Securities (to $27), and RBC (to $37). The consensus 12-month target price of $40 is just a stone's throw from current levels, suggesting more price-target hikes could ensue. Plus, prior to today, six of the eight analysts following the pharma name issued a "hold" or worse rating, which could leave the door open for upgrades. 

PBYI stock could enjoy some additional tailwinds as option bears begin to hit the exits, too. On the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock sports a 10-day put/call volume ratio of 1.02 that sits in the 88th percentile of its annual range. This means that in the past two weeks, puts were bought over calls at a much faster pace than what is typically seen.

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