Bearish Analysts Bombard Battered Pharma Stock

LifeSci Capital called ACER a "high-risk investment"

Jun 26, 2019 at 9:52 AM
facebook twitter linkedin


Acer Therapeutics Inc (NASDAQ:ACER) plunged 78.6% yesterday -- its worst session since September 2008 -- after the Food and Drug Administration (FDA) failed to approve the firm's rare genetic disorder treatment, requesting new clinical data. ACER shares are lower again today, last seen down 4.6% at $3.93, as bearish analysts blast the crumbling pharma stock.

For starters, Raymond James downgraded ACER stock to "market perform" from "outperform." H.C. Wainwright, meanwhile, slashed its price target to $10 from $55. Plus, LifeSci Capital called Acer Therapeutics a "high-risk investment," and that failure to gain regulatory approval or positive data from the "upcoming bioequivalence study could adversely affect Acer's stock price."

There's certainly room for more downgrades and/or price-target cuts to come through. While three of six analysts maintain a "buy" or better rating on ACER stock -- and not a single "sell" on the books -- the average 12-month price target of $9 is a roughly 128% premium to current trading levels.

Elsewhere on the sentiment front, short sellers have certainly set their sights on an attractive target. Short interest jumped almost 71% in the two most recent reporting periods to 307,617 shares. These bears are sidelined through today's trading, considering ACER stock found a spot on the short-sale restricted list amid yesterday's sell-off.

 

 

 

These investors are using the market's volatility to their advantage and scoring triple-digit gains on many of their trades.

Even in today's sideways bear market, this trading strategy has continued to provide consistency and profitability to a small group of investors. By using this approach, these traders are removing directional risk and still hitting triple-digit returns. If you want access to this strategy, and lower risk with higher returns sounds good to you, then don't wait another minute.

Join us now to receive our next trades the moment they come out!

 

Common mistakes options traders make
 


 


 
Special Offers from Schaeffer's Trading Partners