The Big Money's Favorite Biotech Stock
When looking at the biotech industry, a couple questions are worth asking:
- Are there stocks out there that are loved by financial institutions, with increasing ownership?
- If there are, who's at the top?
After scanning for biotech stocks with the highest percentage of total common shares held by institutional interest, only a few companies were left standing.
Of that group, the company with the greatest percentage spike in ownership this quarter (compared to last quarter) was EXACT Sciences Corporation (NASDAQ: EXAS).
Exact Sciences is a molecular diagnostics company that focuses on developing diagnostic screening products for the early detection and prevention of colorectal pre-cancer and cancer.
Financial institutions, in particular, hold a whopping 96 percent of Exact stock -- an increase of nearly 19 percentage points from the previous quarter.
In addition, Exact seems to reflect what institutions are thinking.
Since bottoming at just under $10 per share in October, Exact has been on a nice, steady climb while accelerating over the past several months.
The stock hit its most recent 52-week high in the beginning of September, and has pulled back over the last couple weeks.
The screening criterion utilized to identify Exact was one that isolated biotech stocks trading above $5/share with at least 500K/shares per day (90 day average volume).
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