Sierra Oncology Stock Soars After Buyout

The stock is trading at a three-year high

Laura McCandless

Deputy Editor

Apr 13, 2022 at 10:10 AM

SRRA
GSK

Sierra Oncology Inc (NASDAQ:SRRA) stock is soaring today, up 38% at $54.52, after news that GlaxoSmithKline (GSK) is purchasing the company for $1.9 billion. GSK has been facing pressure to boost its drug pipeline from shareholder Elliot Advisors, and this buyout will alleviate some of that pressure.

Before today's bull gap, SRRA was already steadily climbing on the charts, yesterday hitting $40.38 -- its highest level since July of 2019. Today's pop has the equity at its highest level since May of that year. The stock's 50-day moving average has helped guide it higher since January. And since the start of 2022, Sierra Oncology stock is sporting an impressive 150.7% lead.

Sierra Oncology stock isn't typically very popular amongst options traders. However, today's options volume is running at 31 times the intraday average. The May 55 call is the most popular, followed by the May 50 put, with positions being opened at both.

Short interest has taken off during the last two reporting periods, adding 40.8% during that time. Now, the 1.21 million shares sold short account for 5.3% of the stock's available float.

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