Q2 STOCKS TO BUY

Penny Stock Pops on Licensing Partnership

Short interest on TXMD has surged in recent weeks

Managing Editor
Jun 7, 2019 at 9:41 AM
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Pharmaceutical name TherapeuticsMD Inc (NASDAQ:TXMD) is up 2.2% at $3.29, after the company shared that it has entered an agreement to commercialize its two women's menopausal drugs, Bijuva and Imvexxy, outside the U.S. The deal will bring in €14 million up front, and another €29.5 million following sales, met milestones, and royalties. The only analyst to weigh in so far has been Cantor Fitzgerald, which, while keeping hold of its "overweight" rating and $27 price target, said they "believe the non-dilutive upfront capital this agreement provides will help TXMD fund its U.S. product launches."

TXMD has shed 55% over the past 12 months, but following today's surge, is eyeing its first close above the 20-day moving average since mid-May. The shares recently turned higher after touching a bottom of $2.93 last Wednesday, May 29, and are now pacing toward their sixth straight close without a decline.

Overall, six of the seven analysts following ThereapeuticsMD stock sport a "strong buy" rating, with not a single "sell" in sight. This optimistic sentiment is echoed within the stock's average 12-month price target of $15.83 -- an unbelievable 393% premium to Thursday's close of $3.21.

Lastly, short interest has increased 8.6% during the past two reporting periods, and now accounts for 42.4% of the stock's float. In other words, it would take shorts nearly six weeks to cover their bearish bets, based on average daily trading volumes.

 
 

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