3 Top Biotech Stocks See Their Short Interest Plunge

As the political rhetoric and other headline issues faded between the October 15 and October 30 settlement dates,

in many of the leading biotech and emerging pharmaceutical stocks plunged. That included some of the biggest names in the industry:

,

and

. Here we take a quick look at how these three stocks have fared recently and what analysts expect from them. That is followed by a glance at short interest moves in other leading biotech stocks in the two-week period.

This biotechnology medicines company saw short interest tumble more than 27 percent to around 9.15 million shares, or a little more than 1 percent of float. That ended four periods in a row in which the number of shares short increased. It would take more than two days to cover all short positions. The California-based company develops and markets human therapeutics based on advances in cellular and molecular biology for grievous illnesses. It posted

in the period. Amgen's market capitalization is near $118 billion and its dividend yield is about 2.0 percent. Of the 17 analysts surveyed by Thomson/First Call, nine recommend buying shares, with the rest rating the stock at Hold. Their mean price target, or where analysts expect shares to go, is more than 14 percent higher than the current share price. Shares ended the two-week short interest period more than 3 percent higher, about the same as the Nasdaq in that time. They have pulled back marginally since. Over the past six months, the stock has narrowly underperformed the likes of Johnson & Johnson.

This S&P 500 component saw its short interest shrink more than 20 percent during the two weeks to more than 3.37 million shares. That was less than 2 percent of the float, and it ended three consecutive periods of more than 4 million shares short. It would take less than a day to cover all short positions. The company develops and markets therapies for the treatment of neurodegenerative diseases, hemophilia and autoimmune disorders. The market cap is near $66 billion, and the long-term earnings per share (EPS) growth forecast is almost 16 percent. Biogen has seen

. The consensus recommendation of the 21 analysts surveyed is to buy shares. A move to their mean price target would be a 19 percent gain for the stock. Note that Biogen shares traded higher than that consensus target as recently as July. The share price ended the two-week period about 8 percent higher, though it was up more than 12 percent at one point. Over the past six months, Biogen has underperformed not only the broader markets, but competitor Abbot Labs as well.

The short interest drop of nearly 18 percent in this biopharmaceutical company's shares brought the total to more than 13.44 million by month's end. That was less than 2 percent of the float, as well as the smallest number of shares short since August. The days to cover rose to nearly three. This maker of therapies to treat cancer and immune-inflammatory related diseases has a market capitalization of more than $88 billion. Expectations for revenue growth are high. The price-to-earnings (P/E) ratio is greater than the industry average, but so is the operating margin. All but three of the 19 polled analysts recommend buying shares, with seven of them rating the stock at Strong Buy. They see plenty of room for shares to run, as the mean price target is more than 22 percent higher than the current share price. The shares increased more than 4 percent during the short interest period, but they have pulled back more than 7 percent in the past week. Even with that drop, the stock's performance has been in line with Amgen's over the past six months, but it has outperformed Biogen.

The number of shares short in Alexion Pharmaceuticals, Baxalta, Gilead Sciences, Incyte, Medivation and Vertex Pharmaceuticals also shrank by double-digit percentages in the final two weeks of October. However, Dyax, Illumina, Juno Therapeutics, Opko Health and Seattle Genetics bucked the trend with modest growth in short interest. In BioMarin Pharmaceutical and Intrexon, there was little change between the settlement dates.

Keep up with all the latest breaking news and trading ideas by following Benzinga on

.