Oncology Stock Pops on Promising Drug Data

The stock is headed for its third straight daily win

Digital Content Manager
Jun 14, 2019 at 9:42 AM
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Drugmaker Kura Oncology Inc (NASDAQ:KURA) just announced that its ongoing Phase 2 clinical trial for its experimental lymphoma drug, tipifarnib, met its primary endpoint today. The cancer researcher said the treatment's results yielded "ongoing anti-tumor activity and a manageable safety profile." KURA shares are higher in response, up 3.6% at $219.19 pacing for their best day since September 2017. 

What's more, the stock is pacing for not only its third straight daily win, but its second week in the black, as well. At yesterday's close, the equity had already tacked on 81% since it's late-October low of $10.20, with recent support from the 30-day moving average.

Analysts have been hip to KURA, with all eight in coverage giving the oncology concern a "buy" or better rating. Plus, the consensus 12-month target price of $27.71 represents a region the stock has yet to cross.

Short interest has been telling a different story, however. These bearish bets shot up 6.5% in the last reporting period. Currently, the 2.1 million shares sold short represents a healthy 7% of the stock's available float. Plus, it would take over two weeks to buy back all these pessimistic positions at the security's average pace of trading. Should some of these bearish bets begin to unwind, a short squeeze could help propel KURA even higher.  

 

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