The shares of Cymabay Therapeutics Inc (NASDAQ:CBAY) are plummeting, after its experimental drug used to treat a fatty liver disease called nonalcoholic steatohepatitis (NASH) was only minimally effective during a mid-stage study. The stock is eyeing its biggest one-day drop ever, and already brushed a new two-year low of $4.90, down 54% at $5.05, at last check.
CBAY stock has seen some choppy waters over the past few days, sinking beneath its 320-day moving average -- a recent area of support -- for the first time in three months. While the stock staged an impressive rally off its late-December low of $6.31, pressure near the $14 region has kept a tight lid on the security. Now, the stock is back beneath its year-to-date breakeven, set for its lowest close since September 2017.
Analysts have yet to chime in, but the door is wide open for a fresh round of downgrades, should today's negative price action continue. The equity currently sports nine "buy" or better ratings, compared to one "hold." Plus, its slide down the charts put its consensus 12-month target price of $21.64 at over a 200% premium to current levels.
Shorts are likely celebrating the stock's decline today. While short interest has begun to unravel, down 8.5% in the last two reporting periods, the shares sold short still represent a healthy 16.4% of the stocks available float, or nearly two weeks' worth of buying power, at CBAY's average pace of trading.