2 Biotech Stocks Scaling The Nasdaq

Craig-Hallum lifted its target price on DMAC to $11 from $9

Deputy Editor
Jun 20, 2019 at 2:48 PM
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The S&P hit a new intraday high earlier today as investors digested dovish comments from the Fed. Three individual stocks making notable moves today are drugmakers Edesa Biotech Inc (NASDAQ:EDSA) and DiaMedica Therapeautics Inc (NASDAQ:DMAC), as well as mobile payments processor Net Element Inc (NASDAQ:NETE). Here's a look at what's moving the shares of EDSA, DMAC, and NETE. 

EDSA Stock Doubles on FDA Nod 

Edesa Biotech gained approval from the Food and Drug Administration (FDA) to proceed with a mid-stage study of its EB01 therapy, used to treat patients with chronic allergic contact dermatitis. Edesa plans on enrolling its first patient in the upcoming quarter, and the shares have nearly doubled in response -- up 96.3% at $8.24, pacing for their best day ever. 

In earlier trading, the stock had more than tripled off last night's close, briefly topping the 320-day moving average -- a trendline the security has surged past several times in the past year, but hasn't closed atop since 2014. Earlier this week, the equity bottomed out at a record low of $3.59.

Study Success Stokes DMAC Stock's Red-Hot Rally

The shares of DMAC are are set for their fifth win in six days, after the biotech announced promising early stage trial data for its DM199 drug, used to treat chronic kidney disease. The firm said the drug had no serious side effects, and might be able to restore normal levels of a protein that may be linked to some kidney and heart conditions. The equity hit a six-month high of $5.93 earlier today, and is now trading up 31.2% at $5.01. 

DMAC's announcement has analysts taking notice, with Craig-Hallum lifting its target price to $11 from $9, while maintaining its "buy" rating. Analysts have been fairly bullish on the stock prior to today, though, with all three brokerages dishing out a "buy" or better rating, and a consensus 12-month target price of $8.67, which is a roughly 78% premium to current levels. 

NETE Stock Pops on Crypto Buzz

Online payments concern Net Element just announced today that it would start accepting cryptocurrency payments on its cloud-based software, Aptito. The announcement, which follows the launch of Facebook's Libra cryptocurrency, has NETE stock up 10% at $4.40, eyeing its third straight win. 

Looking at the charts, NETE still has a ways to go. The stock recently bottomed out at eight-month lows, pressured by its 10- and 20-day moving averages. While the equity has broken out above these trendlines in today's bull gap, it's still 23% below its year-to-date breakeven mark.

While some shorts took profits during NETE's recent slide to new lows, there are still 349,140 shares dedicated to these bearish bets. This represents a healthy 10.2% of the stock's available float, or 10.2 times the average daily pace of trading.

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