The firm just released early stage data for its wet AMD gene therapy treatment
The shares of Adverum Biotechnologies Inc (NASDAQ:ADVM) are taking a serious nosedive today, down 32.8% at $8.07, after data from an early stage trial of the company's wet age-related macular degeneration (wet AMD) gene therapy treatment, ADVM-022, were poorly received. As a result, ADVM is trading back near its mid-May levels, eyeing its biggest one-day percentage drop in over four years.
Taking a look at the charts, ADVM spent the better half of the year rallying toward a three-year high of $16.38, hit in mid-July. The stock has cooled since then, but managed to bounce off its 100-day moving average earlier this month. The equity has fallen well below this trendline today, though, and is roughly 50% off this two-year peak.
Analysts have been cautious on the stock, with only two calling it a "strong buy," compared to the four who say it's a "hold." Plus, the 12-month consensus price target of $9.75 is at a discount to last night's close.
Short sellers have been piling on the drugmaker, too. In the last reporting period, short interest rose 24.7%. Now, the 9.31 million shares sold short represent 21.5% of the stock's available float. Plus, it would take 8.5 days to buy back all these bearish bets, at ADVM's average pace of trading.