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

11 Stocks to Buy Before Leap Day

Access your FREE insider report before it's too late!


 
 

Partnercenter


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


Why One Investor Is Betting $523,111 on This 1 Stock
This small, California-based company is pioneering breakthrough technology that is enabling companies to move vast quantities of data over the Internet at lightning speeds.
Coronavirus Drags Wall Street Into The Red
The coronavirus outbreak is starting to impact company's earnings reports
Fitbit Stock Shocks Wall Street
FIT has surged 111% over the past six months
Why One Investor Is Betting $523,111 on This 1 Stock
This small, California-based company is pioneering breakthrough technology that is enabling companies to move vast quantities of data over the Internet at lightning speeds.