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.


A Schaeffer's exclusive

11 Stocks to Buy Before Leap Day

Access your FREE insider report before it's too late!


 
 

Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


Legendary Stock-Picker Calls Top Stock of 2020
Matt McCall's picks were met with disbelief... Until five soared over 1,000%. Get his latest 2020 pick.
Walmart Holding Steady Despite Lackluster Earnings
WMT is up 19% year-over-year
Medical Supplier Falls Victim to Coronavirus Headwinds
Disappointing earnings are shattering MDT today
Legendary Stock-Picker Calls Top Stock of 2020
Matt McCall's picks were met with disbelief... Until five soared over 1,000%. Get his latest 2020 pick.