Nabriva is eyeing its biggest one-day drop since May
The shares of Nabriva Therapeutics (NASDAQ:NBRV) are sinking even deeper into penny stock territory today -- down 18.6% to trade at $1.40 -- after the company said it has entered into an agreement with undisclosed institutional investors for the purchase and sale of a $20 million registered direct offering. This comes despite the drugmaker resubmitting its marketing application to the Food and Drug Administration (FDA) for Contepo, its treatment for urinary tract infections. The announcements have NBRV on pace for its biggest one-day drop since May.
NBRV has been chopping lower for the better part of the year, with overhead pressure emerging at the 100-day moving average. While the $1.70 region served as support for the pharma stock for the better part of the year, the shares have breached this level today. For the quarter, Nabriva is now down 32%.
Those covering NBRV are still extremely bullish, which could leave the door open for more downgrades. Right now, six of the seven in coverage call it a "buy" or better. Plus, the consensus 12-month price target is more than five times last night's close.
On the other hand, short interest has begun to inch higher -- up almost 4% in the last two reporting periods. The 4.2 million shares sold short now represent a solid 5.4% of the stock's available float, and 5.6 times the average daily trading amount.