ZYNE Stock Skyrocketing on CBD Gel Update

The drug stock has more than quadrupled this year

by Lillian Currens

Published on May 6, 2019 at 12:11 PM
Updated on May 6, 2019 at 2:09 PM

The Food and Drug Administration (FDA) granted Zynerba Pharmaceuticals Inc (NASDAQ:ZYNE) "fast track" status for its cannabinoid-based gel, Zygel, used in the treatment of symptoms brought on by the rare genetic disability Fragile X Syndrome (FXS). The stock is up 8% at $12.36 as a result. 

ZYNE has seen some serious growth on the charts in 2019, more than quadrupling this year, and bucking the broad-market trend lower today. The stock just hit a nearly two-year high of $13.06 at the beginning of the month after an impressive seven-day rally. The equity has pulled back some, but managed to ricochet off its 20-day moving average, sending the shares back up the charts. The security is now trading back within striking distance of last week's peak close at $12.52. 

ZYNE Chart May 6

Options bulls are jumping on the stock in response. So far 1,413 Zynerba calls have exchanged hands, almost double the expected amount, compared to just 291 put contracts. The May 12.50 and 15 calls are the most popular so far.

Despite the stock landing on the short-sale restricted list, these bears could be kicking rocks today. Short interest rose 22.3% in the last two reporting periods, now representing a whopping 23.3% of the stock's available float, which could propel the shares higher, should these pessimistic bets begin to unwind. 

On the other hand, analyst sentiment surround the equity has been bullish, with five out of six putting "strong buy" ratings on the table, compared to a lone "hold." Plus, the equity's consensus 12-month target price of $20.08 is at a 62.2% premium to current levels. 

a schaeffer's exclusive


We're celebrating 38 years with this FREE insider report!



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

What's Next for the American Wealth Gap
Porter Stansberry is predicting a major change in the American economic system.
S&P 500's Newest Member Hits Fresh Highs
CDW will be replacing Total System Services on the S&P 500 next week
VTVT Stock Eyes Fresh High on Upbeat Diabetes Drug Data
vTv Therapeutics just presented upbeat data for its mid-stage diabetes treatment
What's Next for the American Wealth Gap
Porter Stansberry is predicting a major change in the American economic system.