Intercept Pharmaceuticals Soars 20%, Possible Short Squeeze

Shares of Intercept Pharmaceuticals Inc ICPT soared more than 20 percent Friday following a favorable FDA ruling on Thursday.

Helping to drive the stock’s large move may have been a short squeeze. At last report, 22.72 percent of the stock’s float was short.

Ahead of the positive news, short interest had increased 8.45 percent from the previous two-week reporting period.

With such a large percentage of the shares shorted, many traders may be buying shares today to cover their positions.

Intercept Pharmaceuticals recently traded at $209.41, up 22.7 percent.