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Drug Stock Doubles on Trial Update

Short interest has been on the rise for SSTI

Jul 15, 2019 at 3:02 PM
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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.

 

 

 

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