Sarepta Stock Reverses Lower After Gene Therapy Update

Cantor Fitzgerald reiterated an "overweight" rating on SRPT

Digital Content Manager
Mar 25, 2019 at 10:05 AM
facebook twitter linkedin


The shares of Sarepta Therapeutics Inc (NASDAQ:SRPT) were higher in pre-market trading, after the biopharmaceutical company gave a positive update on an early study of its Duchenne muscular distrophy (DMD) gene therapy treatment. However, SRPT stock has since reversed lower, last seen down 3.5% at $118.

SRPT stock just hit a four-month high of $155.22 on Feb. 27 before pulling back. The overhead $150-$160 neighborhood has been a speed bump for the equity since mid-2018, when the shares were flirting with all-time highs. More recently, Sarepta stock has been pressured lower by its 10-day moving average, and its 50-day and 200-day trendlines made a "death cross" earlier this month.

Despite its recent dip, optimism abounds among the brokerage bunch. In fact, Cantor Fitzgerald today reiterated its "overweight" rating and $231 price target on SRPT. Of the 20 analysts following Sarepta, 19 give it a "buy" or better rating. Plus, the stock's consensus 12-month price target of $205.60 is at a roughly 70% premium to current levels. 

Conversely, short interest rose 3% in the last reporting period, and now represents 14.6% of the stock's available float. Likewise, option buyers have shown a much healthier-than-usual appetite for bearish bets over bullish on SRPT. On the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock's 10-day put/call volume ratio of 0.45 is in the 87th percentile of its annual range.

 

If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

 


 


 
Special Offers from Schaeffer's Trading Partners