Epilepsy Drug Data Sends CBD Specialist to Record Highs

GWPH short sellers could soon head for the exits

The shares of GW Pharmaceuticals PLC (NASDAQ:GWPH) are in focus today, aftera double-dose of good news last night. First, the drugmaker's first-quarterlosswas slimmer than expected. But more importantly, its epilepsy drug Epidiolex met the main goals in a late-stage study, while first-quarter sales for the drug were higher than expected.

In response, GWPH is up 8.1% to trade at $194.75, and earlier nabbed a fresh record high of $196. Since a late-February earnings-induced bull gap, the shares had consolidated below the $180 level. Not only is this former resistance toppled today, but the security is on track for its fourth straight win, and has extended its year-to-date lead to 92%.

The news has been met with no fewer than six price-target hikes too, the highest being to $234 from $227 at Morgan Stanley. The stock is no stranger to bull notes though, with 10 of 11 brokerages in coverage rating it a "buy" or better, and the average 12-month price target sits all the way up at $218.42.

Short sellers may be ready to hit the exits. Short interest increased by 7.5% in the most recent reporting period to 3.10 million shares. This represents 12.2% of the stock's total available float, and 8.2 days' worth of pent-up buying power, at its average pace of trading.