Market Overview

Short Squeeze May Be Fueling BioCryst's Big Upgrade Move

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BioCryst Pharmaceuticals, Inc. (NASDAQ: BCRX) shares are up 10.5 percent on Friday following an upgrade by JMP Securities from Market Perform to Market Outperform. A closer look at the numbers for the biotechnology stock suggests a short squeeze may be playing a role in the sizable move.

According to shortsqueeze.com, BioCryst currently has a relatively high short percent of float of 16.5 percent. BioCryst has more than 7.6 million shares held short with 14.9 days to cover.

Back in February, BioCryst stock plummeted nearly 70 percent in a single day when the company reported disappointing trial results for avoralstat in treatment of angioedema attacks. The company reported that a treatment called OPuS-2 did not produce statistically significant results compared to a placebo.

Not surprisingly, short interest in BioCryst peaked shortly thereafter at around 25 percent. BioCryst shares dipped as low as $1.63 following the news, but the stock has steadily climbed throughout the rest of 2016 as short interest declined. Friday’s big jump puts BioCryst back above $6 for the first time since before the disappointing February data.

While a number of short sellers took the opportunity to cover at much lower prices earlier in the year, the numbers suggest the remaining short sellers are likely contributing to Friday’s big move following the JMP upgrade.

Latest Ratings for BCRX

DateFirmActionFromTo
Nov 2019UpgradesNeutralBuy
May 2019DowngradesOutperformSector Perform
Apr 2019MaintainsEqual-WeightEqual-Weight

View More Analyst Ratings for BCRX
View the Latest Analyst Ratings

Posted-In: Biotech Long Ideas Short Ideas Upgrades Analyst Ratings Movers Trading Ideas General

 

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