Sarepta Stock Reverses Lower After Gene Therapy Update

Cantor Fitzgerald reiterated an "overweight" rating on SRPT

Deputy Editor
Mar 25, 2019 at 10:05 AM
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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.

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