Q2 STOCKS TO BUY

Biotech Stock Boosted on Late-Stage Trial Data

The stock has been bouncing off support at the $17 level

Deputy Editor
Dec 9, 2021 at 11:16 AM
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Aurinia Pharmaceuticals Inc (NASDAQ: AUPH) is up 4.8% to trade at $21.83, after a late-stage trial of the company's treatment for active lupus nephritis showed sustained efficacy and a favorable risk-benefit profile over a three-year period. The drug, Lupkynis, is approved by the U.S. Food and Drug Administration (FDA) in combination with a background immunosuppressive therapy regimen to treat patients with the kidney disorders.
 
Following its Nov. 3 13-year peak of $33.97, AUPH dropped 43% last month, partially due to its mid-November bear gap after the company filed for a $250 million mixed shelf offering. However, the 160-day moving average provided a floor at the $17 level, and the equity has recently bounced off that level -- on track for its fourth-straight daily win.
 
Of the eight analysts in coverage, six carry a "buy" or better rating on AUPH, with two at a tepid "hold." Plus, the 12-month consensus price target of $32 is a roughly 50% premium to current levels.
 
It's also worth noting that while short interest has been falling off, down 37.7% during the two most recent reporting periods, it still represents 8.9% of the stock's available float. 

Meanwhile, AUPH ranks low on the Schaeffer's Volatility Scorecard (SVS), with a score of just 15 out of 100. In other words, the security has consistently realized lower volatility than its options have priced in, making the stock a potential premium-selling candidate.

 

 

 

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