2 Biotech Stocks Making Big Moves

The ever-volatile biotech sector is making noise today. Viking Therapeutics Inc (NASDAQ:VKTX) is soaring up the charts, while Intellia Therapeutics Inc (NASDAQ:NTLA) stumbles.

Viking Could Burn Shorts' Ship

VKTX is up 24% to trade at $74.75 today, after the company's third-quarter loss came in below analyst estimates. The big driver though is the encouraging pipeline update on its obesity drug, which showed promising results in clinical studies. This is even more notable considering Viking doesn't have an approved product in its portfolio, despite its generated revenue.

The shares are trading at their highest level since mid May, and are now 296% higher in 2024. Despite a summer-long consolidation below $70, support was in place at its 200-day moving average. A short squeeze could power additional gains, with short interest falling 15% in the most recent reporting period yet the 14.48 million shares sold short accounting for 14% of VKTX's total available float. 

Intellia a Downgrade Risk

NTLA is down 18.7% to trade at $16.20, on track for its worst single-session decline since xx. Although the gene editing company's mid-stage data for a gene therapy study were positive, the phase 2 results left a lot to be desired. Baird trimmed its price target to $18 from $24 in response. The shares earlier fell to a four-year low of $15.52, and are now down 46.5% in 2024. 

Despite the struggles, 21 of the 27 brokerages maintain "buy" or better rankings, with not a single "sell" to be found. The consensus 12-month price target of $67.25 is now a 313% premium from its current perch, implying a shift from the brokerage bunch could weigh on the equity.