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2 Penny Stocks Jumping Out of the Gate

Analysts are surprisingly bullish on PRTK stock

Aug 30, 2019 at 10:30 AM
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Healthcare stocks Paratek Pharmaceuticals Inc (NASDAQ:PRTK) and Akari Therapeutics PLC (NASDAQ:AKTX) both made headlines with strong moves out of the gate. Let's take a moment and check out how the shares of PRTK and AKTX are trading. 

PRTK was last seen trading up 5.6% at $3.58, thanks to positive data around the company's skin infection treatment Nuzyra. This move does little to help the stock from a longer term perspective, since it was trading in double-digit territory this time last year, and has been trending lower since then, hitting an all-time low of $2.87 at the start of August.

Amazingly, analysts are overwhelmingly bullish on the shares, with eight of nine in coverage handing out "strong buy" recommendations. However, short interest remains high, and these bears may be hedging with call options, since the Schaeffer's put/call open interest ratio (SOIR) of 0.05 ranks in the bottom annual percentile -- show a very unusual call-skew among short-term speculators.

As for AKTX, the shares are up 12% at $2.16, after the company said the Food and Drug Administration (FDA) granted "orphan drug" status to nomacopan, a treatment for a rare clotting condition. Still, Akari has been weak longer term, struggling since its breakout to $9.20 in March. In fact, the shares have spent more of the past year hovering near the $2 mark.

As for sentiment, there are just two analysts covering AKTX, and both recommend buying the shares. Their average 12-month price target is $7.50.

 

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