- Short interest in many of the leading biotech stocks shrank in the most recent period.
- Two stocks in particular stood out among the few that bucked the trend in those two weeks.
- Shares of one of those two stocks slumped more than 22 percent during the period.
Illumina
This San Diego-based maker of products and services that serve the sequencing, genotyping and gene expression markets saw its short interest jump almost 11 percent to more than 6.60 million shares, or 4.6 percent of float, in the final weeks of the month. That ended nine straight periods in which the number of its shares short pulled back. It would take less than three days to cover all short positions. Illumina posted disappointing preliminary first-quarter results in the period, resulting in downgrades. Short sellers watched the shares fall more than 22 percent during the two-week short interest period, compared to a decline of more than 3 percent in the Nasdaq.Vertex Pharmaceuticals
The number of shares sold short in this company focused on cystic fibrosis and other serious diseases surged more than 12 percent late in the month to more than 5.65 million, or 2.3 percent of the float. That ended three consecutive periods of falling short interest. The days to cover rose to more than two as the average daily volume dwindled somewhat. Vertex stock has struggled since last summer and was one of the worst performers in the first quarter. Shares ended the latest short interest period up about 3 percent, though they were up 6 percent twice in those two weeks. The stock now is almost 35 percent lower since the beginning of the year. At the time of this writing, the author had no position in the mentioned equities. Keep up with all the latest breaking news and trading ideas by following Benzinga on Twitter.© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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