Kezar Life Sciences posted results from a mid-stage study of its kidney disorder drug
Kezar Life Sciences Inc (NASDAQ:KZR) is skyrocketing today, up 84.1% at $10.55, after positive results from a mid-stage study of its kidney disorder drug, zetomipzomib. Following the data, Wells Fargo raised its price target to $17 from $13, while JonesTrading upped its price objective to $20 from $17.
Today's pop has the equity recovering a good portion of its early-May bear gap, as well as removing it further from its mid-June lows. Still, the stock's 100-day moving average lingers just overhead as potential pressure.
Analysts are wholeheartedly bullish on KZR, making today's bull notes more noteworthy. All five firms in coverage carry a "strong buy" rating, and the 12-month consensus price target of $19 is an 87% premium to current levels.
Meanwhile, short interest has been building, up 19.7% during the most recent two-week reporting period. Now, the 4.30 million shares sold short account for 9.3% of the stock's available float.
The equity's usually quiet options pits are bursting with activity today. So far, 7,591 calls and 3,231 puts have exchanged hands, which is 150 times what is typically seen at this point. Most popular is the July 12.50 call, followed by the October 21 call, with positions being opened at the latter.