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SGMO Stock Runs Higher on Study Results

The stock is appearing to break out on the charts

Digital Content Manager
Dec 9, 2019 at 9:22 AM
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The shares of Sangamo Therapeutics Inc (NASDAQ:SGMO) are eyeing a three-month high of $12.25 today, up 5.1% at last check, after the firm shared promising results for its gene-editing therapy ST-400. Specifically, the first three of the six patients tested in trials showed signs of prompt hematopoietic reconstitution. The company is expected to seek approval for the treatment next year.

SGMO has been in rally mode since bottoming out at a seven-month low just south of the $8 level in early October. Since then, the equity has added 59.1%, and just sliced through familiar pressure at its 320-day moving average earlier this month. The stock is traveling further away from its year-to-date breakeven, too, now up nearly 4% in 2019. 

While sentiment surrounding the pharmaceutical concern is mostly bullish, two of the six in coverage still maintain a tepid "hold" rating, which could leave the door open for more stock-boosting upgrades. On the other hand, the consensus 12-month target price of $20.67 hasn't been touched since March 2018.

The options pits have taken a bullish approach to SGMO, too. On the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) the security sports a 50-day call/put volume ratio of 9.72, which sits in the 76th percentile of its annual range, indicating an unusually heavy appetite for calls of late. 

 

 

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