Schaeffer's Top Stock Picks for '25

2 Penny Stocks Popping on Partnerships

JBLU is eyeing its lowest close in months after lowering its third-quarter RASM outlook

Digital Content Manager
Sep 4, 2019 at 1:28 PM
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Stocks have made a comeback today, led by big gains in the energy sector. Three specific stocks making notable moves are healthcare names Clearside Biomedical Inc (NASDAQ:CLSD) and Idera Pharmaceuticals Inc (NASDAQ:IDRA), as well as flight concern JetBlue Airways Corporation (NASDAQ:JBLU). Below, we'll take a look at what's driving the shares of CLSD, IDRA, and JBLU. 

CLSD Stock Surges On Regenxbio Partnership

The shares of long-suffering Clearside Biomedical are getting a boost today, after the ocular therapy concern inked a licensing agreement Regenxbio (RGNX). The agreement will give RGNX exclusive rights to CLSD's proprietary microinjector for direct delivery of its new gene therapy drug, RGX-314. 

CLSD shares are up 22.4% to trade at $0.72. This pop comes just days after the penny stock suffered a massive 38.2% drop on Aug. 22, in reaction to the Food and Drug Administration's (FDA) rejection of the company's eye drug, Xipere. The stock bottomed at an all-time low of $0.56 just a few days later. While CLSD is pacing for its first close atop its 10-day moving average since gapping lower, it seems to have run out of steam right below previous support at its 20-day trendline.

AbbVie Deal Boosts Idera Stock 

News that Idera Pharmaceuticals will enter into a clinical research partnership with AbbVie (ABBV) has its shares up 10.4% at $2.54. The two drugmakers will collaborate on a study of AbbVie's ABBV-368 treatment, paired with IDRA's experimental tilsotolimod drug, in patients with metastatic head and neck squamous cell carcinoma. 

Since hitting a six-year low of $2.08 on Aug. 15, the security has rallied roughly 22%, and is now eyeing its first close atop its 50-day moving average since July. Short sellers, meanwhile, cashed in during the stock's slide to new lows. Short interest fell 10.6% in the Aug. 1-Aug. 15 reporting period to 830,000 shares -- the fewest since mid-February.

JBLU Stock Sinks on Downwardly Revised RASM Forecast 

JetBlue is taking a hit today, after the company predicted its third-quarter revenue per available seat mile (RASM) growth will range from 2% to flat in the third quarter, versus the previous estimate of 0.5% to 3.5%. The stock has taken a serious beating in recent months, guided lower by its 10-day moving average. In fact, JBLU lost nearly 10% in August -- its biggest one-month drop since December. The stock hit a five-month low of $16.25 earlier, and is now down 4.7% at $16.37. 

Considering JBLU's recent trajectory, it's no surprise that most analysts consider the security a "hold" or worse. However, five of the 14 in coverage still call the airplane name a "strong buy." What's more, the 12-month consensus price target of $21.53 represents a level not touched by JBLU since March 2018, and represents a 31.4% premium to current levels. Should this negative price action continue, a round of bearish analyst notes could add even more pressure on the charts. 

 
 

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