Stocks On the Move: Clovis Oncology Inc, Egalet Corp, and Ambac Financial Group, Inc.

Biotechs Clovis Oncology Inc (CLVS) and Egalet Corp (EGLT), as well as financial stock Ambac Financial Group, Inc. (AMBC) are among the stocks making big moves in today's trading

Dec 19, 2016 at 3:47 PM

U.S. stocks are higher after this morning's economic data and an afternoon speech from Fed Chair Janet Yellen. Among specific equities in focus today are biotechs Clovis Oncology Inc (NASDAQ:CLVS) and Egalet Corp (NASDAQ:EGLT), as well as financial stock Ambac Financial Group, Inc. (NASDAQ:AMBC). Here's a quick look at what's moving CLVS, EGLT, and AMBC.

CLVS is up 9.5% at $40.76 -- and earlier notched a new annual high of $46.97 -- after news that the biotech's ovarian cancer drug, rubraca, was granted accelerated approval by the U.S. Food and Drug Administration (FDA). Clovis Oncology Inc shares now sit up more than 17% in 2016, and are on pace to close above the $40 level that has acted as resistance since September. Shorted shares still account for a hefty 38.4% of CLVS' float , which would take 6.5 days of trading to cover, at CLVS' average daily volume. A short squeeze could provide added tailwinds for CLVS.
EGLT is up 4.6% at $8.26, after Cantor Fitzgerald reiterated its "overweight" rating for the biotech, after studies found its pain medication to have less intranasal abuse potential than opioid medications such as OxyContin. In addition, Cantor Fitzgerald set a price target of $21 -- more than twice EGLT's current price. EGLT is still down by more than 24% in 2016, with the shares struggling to break out above resistance in the $8.50-$9 region. Short sellers have been piling on, with a whopping 57% of Egalet Corp's float sold short, which would take more than 17 days of trading to cover, at EGLT's average daily volume.

AMBC is down 15.5% at $21.97 -- and is among the worst performing stocks on the Nasdaq -- after a downgrade to "sell" from "neutral" from MKM Partners. The brokerage firm also cut its price target to $10 from $27 -- implying a drop of more than 50% from AMBC's current price -- stating, "We continue to have great difficulties assessing an appropriate value for the company." Ambac Financial Group, Inc. shares currently sit on the short-sale restricted (SSR) list, but remain more than 55% higher or the year, and touched an annual peak earlier this month.

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