Kite Pharma Drops From The Sky
Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.
Kite Pharma Inc (NASDAQ: KITE) shares are trading lower by $3.10 at $56.98 in Friday's session. The issue has declined in six of its last seven trading sessions since it made its all time high ($78.44) and all time closing high price ($76.50) on August 5.
The decline was set in motion before the company reported a loss Q2 GAAP loss of $0.48/share on sales of $4.4M vs. Est. $2.5M. What may have rattled the Street may been that the company reaffirmed FY2015 cash burn guidance at $100-$125M. Before the report, the issue had already declined from its highs to $67.85.
It maintained the $66 level after losing nearly $2 in the trading session on August 11. On no news, it shed over $6 on Thursday ($66.24 to $60.08). Panic selling ravaged the issue in Friday's session as it swooned to $53.80 earlier in the session before rebounding back to its current level.
That denotes a 32 percent drop from its all time to today's low in only seven trading sessions.
The last two sessions have highlighted by much higher than average trading volume. On Thursday, it traded 2.14m shares and has already traded 1.7M shares today compared with its 20 day average of 826K.
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