Catabasis Pharmaceuticals Inc (CATB) short sellers are celebrating the stock's 26% plunge
Biotech
Catabasis Pharmaceuticals Inc (NASDAQ:CATB) is getting crushed this afternoon, after the drugmaker's
cholesterol drug failed in a mid-stage trial. At last check, the stock was down roughly 26% at $5.08, and earlier fell as far south as $4.78, putting CATB on track for its worst daily performance ever. This is business as usual for the shares, which have surrendered 36% of their value year-to-date.
CATB
short sellers must be loving life right now. During the past two reporting periods, short interest on the stock spiked close to 15%. Now, 7.8% of CATB's float is sold short, which would take approximately
four weeks to buy back, at the stock's typical trading levels. Of course, the shares are short-sale restricted today amid their steep sell-off.
On the other hand, it seems as though the
brokerage crowd is beginning to sing a different tune. Heading into today, all three analysts tracking CATB had doled out "strong buy" recommendations. Plus, the stock's consensus 12-month price target stood at $21.50 -- record-high territory, and quadruple the shares' current perch.
Since the drug data was released, signs of pessimism have begun cropping up. Specifically, Catabasis Pharmaceuticals Inc (NASDAQ:CATB) has seen its price target cut at Wedbush (to $17), Citigroup (to $8), and Oppenheimer (to $23).
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