Kite Pharma Gets Off The Ground With Trial Update, New Buy Rating

Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.

Kite Pharma Inc KITE shares were trading higher by $3 (5 percent) at $61 in Monday's session. On Friday, the issue swooned to its lowest level ($53.80) since June 4 when it bottomed at $53.44. Only eight sessions ago, the issue posted its all-time high ($78.74) and all-time closing high price ($76.50).

There are two catalysts that are playing a role in today's rebound.

First of all, the company gave an update on KTE-C19 trail and reported it's on track to advance to PIVOTAL Phase 2 Trail.

In addition, the company was initiated at Buy by Standpoint Research and announced a $100 price target.

After a sharply higher open ($62.58 vs. Friday's close of $58) it retreated to $59.78 before resuming its rally. So far, it has reached $64.63 before falling back to the $61 level.

Today's price action is taking place on higher than average daily volume. So far, it has traded 1.59 million shares compared with its 20-day average of 905,000 with over four hours remaining in the session.