Bullish Signal Could Mean New Heights for Gene Therapy Stock

CRSP is up over 97% year-over-year

Digital Content Manager
Aug 5, 2020 at 2:52 PM
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The shares of Crispr Therapeutics AG (NASDAQ: CRSP) are down 1.2% to trade at $93.47 this afternoon, though the stock still enjoys a 97.8% year-over-year lead, with support from its the 30-day moving average. More upside may be on the horizon, too, with the security trading within 2% of its July 8, all-time-high of $97.82 while also sporting amid historically low implied volatility (IV) -- a historically bullish combination for CRSP. 

According to data from Schaeffer's Senior Quantitative Analyst Rocky White, there have been two other times in the past five years when the stock was trading within 2% of a 52-week high, while its Schaeffer's Volatility Index (SVI) sat in the 20th percentile of its annual range or lower -- as is the case with the security's current SVI of 66.3%, which sits just above the 16th percentile of its 12-month range. The data shows that one month after these signals, the stock was higher 50% of the time, averaging a one-month return of 12.1%. From its current perch, a move of similar magnitude would put the CRSP just below $105, at yet another record high.


Analysts are optimistic toward Crispr Therapeutics stock. Of the 14 in coverage, 10 sport a "buy" or better rating, and the remaining four carry a tepid "hold" or worse. Meanwhile, the stock's 12-month consensus target price of $95.21 is only a 1.6% premium to current levels.

That upbeat sentiment is reflected in the options pits, too, where calls hold the advantage. In the past 50 days, 9,007 calls have exchanged hands on the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), compared to a meager 1,596 puts. The resultant call/put volume ratio of 5.64 sits in the 89th percentile of its annual range, suggesting a healthier-than-usual appetite for bullish bets of late. 


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