Drug Stock Doubles on Trial Update

Short interest has been on the rise for SSTI

Jul 15, 2019 at 3:02 PM
facebook twitter linkedin


U.S. stocks have pared their gains after hitting record highs earlier. Three names making moves in the meantime are drugmakers Eton Pharmaceuticals Inc (NASDAQ:ETON) and Capricor Therapeutics Inc (NASDAQ:CAPR), as well as gunfire detection specialist Shotspotter Inc (NASDAQ:SSTI). We'll breakdown how ETON, CAPR, and SSTI shares are trading below.

ETON Crashes on FDA Decision

ETON shares have given back 15.2% today to trade at $7.04 after the company's conjuctivitis treatment failed to win approval from the Food and Drug Administration (FDA). This set up the stock for its lowest close since February, though the $7 area could act as a floor like it did last month. Right now there's just one analyst in coverage, and their 12-month price target is all the way up at $18. ETON stock briefly topped the $10 level in intraday trading back in mid-May.

Capricor Therapeutics Stock More Than Doubles

CAPR is going the other direction today, surging 153% to trade at $8.15. The company announced positive results for its treatment for Duchenne Muscular Dystrophy (DMD) in a mid-stage trial. The huge move higher puts the shares above the 200-day moving average for the first time in over a year, with Capricor now in positive territory for 2019. This time last year, however, the equity was near the $16 mark, which is still below the average analyst price target of $35.

Bear Note Pressures Shotspotter

SSTI shares have moved south out of their recent consolidation area, dropping 8.6% today to $39.47. Pressuring the stock is a note out of Northland Capital, which downgraded Shotspotter to "market perform" and cut its price target to $47 from $60. Northland wrote that it's concerned about potential churn in SSTI's customer base. Today's price action also puts the security below recent support from the 320-day moving average.

As for sentiment data for the stock, 70% of brokerage firms recommend buying it, and the average 12-month price target is $52.88. On the other hand, short interest keeps building, with more than 29% of the float held by short sellers at the moment.

 

 

 

Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

 
Schaeffer's Daily Bulletin Offer
 


 


 
Special Offers from Schaeffer's Trading Partners