Dynavax Stock Rises After Lofty Bull Note

Evercore ISI initiated coverage with an "outperform" rating

Deputy Editor
Jun 15, 2020 at 11:45 AM
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Dynavax Technologies Corporation (NASDAQ:DVAX) is up 7.4% at $6.15 at last check, after Evercore ISI initiated coverage with an "outperform" rating and a price target of $14 -- more than double the stock's current levels. Though tapering off from its June 1 annual high of $8.12, the biotechnology company is still up an impressive 169.2% in the last three months. With the familiar 20-day moving average emerging as support, DVAX is looking to buck the broad market sell-off today and emerge with its first weekly win of the month. 

Today's bull note aligns well with the broader brokerage community. Analysts are unanimously bullish, with the three in coverage sporting a "strong buy" rating. Meanwhile, the 12-month consensus price target of $16 is a whopping 161.87% premium to current levels. Among short sellers, short interest has started to fall off, down 3.4% in the last reporting period. However, the 11.53 million shares sold short still accounts for 17.7% of the stock's available float. 

In the options pits, calls are extremely popular, despite limited absolute volume. In the last 10 days, 8,288 calls have been bought at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), compared to just 1,028 puts. However, given the amount of short interest tied up in the stock, it's possible some of this call buying could be shorts seeking an options hedge against any unexpected upside.

Today, 2,273 calls and 786 puts have crossed the tape already. Most popular by far is the June 7 call expiring at the end of this week. This contract also happens to be home to peak ope interest. Buyers of this call are banking on a continued rally from DVAX by Friday, when the option expires.


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