The brokerage firm sees 25% downside in the shares
B. Riley FBR downgraded Adamis Pharmaceuticals Corp (NASDAQ:ADMP) to "sell" from "neutral," and lowered its price target to $1.10 from $1.90 -- a 25% discount to last night's close. In reaction, the penny stock has plunged 4.1% out of the gate to trade at $1.40.
It's already been a tough stretch for the shares of the EpiPen rival, which were down almost 64% year-over-year heading into today's trading. More recently, the stock's rebound off its July 2 record low of $1.20 was quickly contained by familiar resistance at its descending 50-day moving average.
Nevertheless, the majority of the analysts in coverage still maintain a "buy" or better rating on the biopharmaceutical name. Plus, the average 12-month price target sits all the way up at $171.92. More bear notes could be in store for the underperformer.
Elsewhere on the sentiment front, short sellers have been increasing their exposure to the struggling stock. Year-to-date, short interest on ADMP is up 13.4% to 4.08 million shares. This accounts for a healthy 8.7% of the security's available float, or 12.9 times the average daily pace of trading. These bears are sidelined today, though, with the equity on the short-sale restricted list.