Q2 STOCKS TO BUY

Drug Stock Scaling the Nasdaq on a Halo Lift

TrueCar stock is eyeing new lows after its CEO announced his retirement

Digital Content Manager
Jun 3, 2019 at 2:13 PM
facebook X logo linkedin


While the Dow is currently trading around breakeven, the tech-rich Nasdaq is down triple digits on regulation concerns for FAANG stocks. Two stocks that have also captured Wall Street's attention today are biopharmaceutical concern Mirati Therapeutics Inc (NASDAQ:MRTX) and car-pricing database name TrueCar Inc (NASDAQ:TRU). Below, we will dig into into what's driving the shares of MRTX and TRU.

MRTX Shares Among Best of Nasdaq on AMGN Drug Win

MRTX is one of the top gainers on the Nasdaq today, on a halo lift from drugmaker Amgen (AMGN), which announced that its new cancer treatment targeting KRAS genetic mutations yielded a high response rate in patients with lung cancer. Mirati, which is also working to develop a drug that targets the same cell mutation, has seen its shares rise 35.1% to $91.57 as a result. What's more, analysts at Cantor Fitzgerald said Amgen's "results should read positive for MRTX stock."

Not only are MRTX shares scaling the Nasdaq today, they've already hit a record high of $96.70, and are on pace for their best day since November 2017. Today's surge has options bulls at the helm, with 11,000 calls across the tape so far -- nearly nine times the average intraday volume. It looks like several traders are trying to cash in on today's surge, seemingly selling to close their now in-the-money June 75 calls. 

CEO Retirement Sinks TRUE Stock

Car concern TRUE is eyeing its lowest close in over three years, after CEO Chip Perry announced his retirement, with Michael Darrow appointed as the interim president and CEO. The stock is down 14.8%, at $5.55, and earlier fell as low as $5.50. The equity is set for its worst session since a February bear gap, and is now more than 60% off its peak at $14.55 last September. 

While today's price action has placed TRUE squarely on the short-sale restricted (SSR) list, its recent behavior on the charts has had short sellers upping the bearish ante. In the last two reporting periods, short interest rose 9.6%, with the 9.1 million shares sold short representing a healthy 9.8% of the stock's float. At the security's average pace of trading, it would take almost six days to cover all these pessimistic positions. 

 
 

“Buy This Stock Now!” - Expert Who Called 11x On TSLA

He called a rare 11x on Tesla…

But now, thanks to Elon & Trump’s new alliance…

He says there’s a new opportunity that could be 1,000x BIGGER than Tesla – and it could completely revolutionize a $23 Trillion market.

It’s trading for less than $5 per share right now…

But it won’t be under the radar for long.

Discover The 1,000x Bigger Elon Opportunity Here

GRAND SLAM COUNTDOWN

 
 

Featured Articles from Trusted Partners:

👀Learn How Dividends Create Passive Income for Life
Receive $200 Off Motley Fool Epic. The Motley Fool Epic $299 discounted offer is based on $499/year list price. Introductory promotion for new members only. Take control of your money and your portfolio with Motley Fool Epic.

💵New Income System Could Pay You $4,243 Monthly
You could collect an average of $4,243 per month starting as early as next week with a new payout system for income investors. New registrations are being accepted for investors who want to be in a position to start with their first payout next week.

🚀Easy 92% Crypto Dividends (No Coins Required)
COIN stock doesn't pay a dividend... But there's actually a new way to collect a massive dividend that's indirectly based on the stock and offers a terrific monthly income (currently yielding nearly 92% on a forward basis).

🤝Free Advisor Match with Wiseradvisor.com
Don't leave your retirement to chance! Get matched with a trusted financial expert for FREE and make the most of your tax refund. Get started now.

⚠️Dennis Quaid's #1 Warning for Americans
Here's the thing: life doesn't come with guarantees. The economy shifts, markets stumble, and years of hard work could slip through your fingers like sand. But it doesn't have to be that way for you. So request a free copy of this Gold & Silver Guide that will arrive right to your doorstep when you act now.

 

 
 

Follow us on X, Follow us on Twitter