Alnylam Pharmaceuticals Put Buyers Take Profits During Slide

Sanofi divested its 10% stake in Alnylam Pharm

by Karee Venema

Published on May 3, 2019 at 1:49 PM

Amid an up day in the broader equities market, the shares of Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) are trading 6.4% lower at $77.25, on news Sanofi (SNY) divested its roughly 10% stake in the biopharmaceutical firm. This comes after the two companies concluded a research and options phase of an RNAi therapeutics collaboration that began in 2014.

It's already been a rough week for ALNY stock -- down 11.3% so far -- which has been falling since the company's Wednesday-morning earnings report. The shares are now poised to close below their 120-day moving average for the first time since late February, but could be finding a familiar foothold in the $77-$78 range, site of an early January bull gap that served as a floor in the first quarter.

alny stock daily price chart on may 3

ALNY options traders are in overdrive this afternoon, with 3,000 puts and 2,035 calls on the tape -- five times the average daily volume of 981 contracts, and total volume pacing in the 99th annual percentile. Options bears may be taking profits at the May 90 put. Trade-Alert indicates a number of these puts were bought to open on Monday, April 30, for around $4.65 apiece, and the bid price at this now in-the-money strike was last seen at $12.30.

Elsewhere on Wall Street, short sellers have been ramping up their bearish exposure to the biopharma. Short interest edged up 3.1% in the most recent reporting period to 5.52 million shares. This accounts for a healthy 6.1% of Alnylam Pharm's available float, or 7.7 times the average daily pace of trading.

Analysts, meanwhile, are mostly bullish on the ALNY stock. While 10 of 13 covering brokerages maintain a "buy" or better rating, the average 12-month price target of $125.22 is a roughly 62% premium to current trading levels.

A Schaeffer's exclusive!

The Expert's Guide

Access your FREE trading earning announcements before it's too late!



NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories

Research Exposes Shortcut to Stock Market Wins
A simple way to stop picking losers, and start cashing in like Wall Street's elite.
Cannabis Stock Rally Cut Short after Downgrade
Aurora Cannabis did receive a price-target hike from Jefferies, though
Vaccines, China Trigger Roller Coaster Week for Stocks
Moderna's vaccine captured the attention of Wall Street
Research Exposes Shortcut to Stock Market Wins
A simple way to stop picking losers, and start cashing in like Wall Street's elite.