Seeking Alpha
Value, growth, long-term horizon, medium-term horizon
Profile| Send Message|
( followers)  

Here we report a list of biotech stocks that have seen strong selling pressure recently; however, these may also be opportunities to buy in.

We ran a screen on stocks from the biotech industry for those that are being highly shorted, with short floats above 10%. We then screened for those that have also seen significant net institutional selling over the current quarter.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.

We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.

Do you think these could be opportunities to buy in? Use this list as a starting-off point for your own analysis.

List sorted by net institutional shares sold as a percent of share float.

1. Nektar Therapeutics (NKTR): Engages in developing a pipeline of drug candidates that utilize its PEGylation and polymer conjugate technology platforms. Market cap of $578.97M. Float short at 11.11%. Net institutional shares sold over the current quarter at 3.7M, which is 3.55% of the company's 104.25M share float. The stock is a short squeeze candidate, with a short float at 11.11% (equivalent to 9.84 days of average volume). The stock is currently stuck in a downtrend, trading 5.45% below its SMA20, 17.81% below its SMA50, and 45.19% below its SMA200. It's been a rough couple of days for the stock, losing 8.83% over the last week.

2. Acorda Therapeutics, Inc. (ACOR): Involves in the identification, development, and commercialization of therapies for multiple sclerosis (MS), spinal cord injury, and other nervous system disorders. Market cap of $930.82M. Float short at 11.09%. Net institutional shares sold over the current quarter at 1.1M, which is 3.47% of the company's 31.74M share float. The stock is a short squeeze candidate, with a short float at 11.09% (equivalent to 8.08 days of average volume). The stock is currently stuck in a downtrend, trading 8.94% below its SMA20, 15.57% below its SMA50, and 12.19% below its SMA200. It's been a rough couple of days for the stock, losing 6.16% over the last week.

3. MannKind Corp. (MNKD): Focuses on the discovery, development, and commercialization of therapeutic products for diabetes and cancer. Market cap of $386.36M. Float short at 28.55%. Net institutional shares sold over the current quarter at 2.4M, which is 3.03% of the company's 79.29M share float. The stock is a short squeeze candidate, with a short float at 28.55% (equivalent to 25.04 days of average volume). The stock has had a good month, gaining 31.11%.

*Institutional data sourced from Fidelity, all other data sourced from Finviz.

Source: 3 Highly Shorted Biotech Stocks With Strong Institutional Selling