DMD Drug Data Capsizes WAVE Life Sciences Stock

The equity just hit a new 17-month low

Digital Content Manager
Apr 16, 2019 at 10:22 AM
facebook twitter linkedin

The shares of WAVE Life Sciences Ltd (NASDAQ:WVE) are near the bottom of the Nasdaq today, after the biotech released data for its Duchenne muscular dystrophy (DMD) treatment, suvodirsen. Safety and tolerability data for the Phase 1 study appeared worse than rival Sarepta Therapeutics' (SRPT) DMD drug, eteplirsen. As a result, WVE stock is down 28.9% at $24.19. 

WVE recovered from its late-January lows near $32.50, and rallied to its year-to-date high of $48.64 in mid-March. The shares had fallen back to the $33-$34 region heading into today's trading, but have now sliced through this region, and earlier tapped a 17-month low of $22.90. Plus, the equity is now down 42.5% so far this year. 

Today's dramatic price action could lead to a round of downgrades for WVE, too. Currently all five analysts give the stock a "strong buy" rating. Plus, the consensus 12-month target price of $60 more than doubles current levels. 

Short sellers are likely cheering today's plummet. Short interest spiked 13.9% in the last two reporting periods. The 3.39 million shares sold short represents roughly a quarter of the stock's available float, or three weeks of trading, at WVE's average daily volume. These bearish bettors are sidelined today, though, with the stock on the short-sale restricted list.


Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

Best stocks for October and worst stocks for October


Special Offers from Schaeffer's Trading Partners