Omeros Shorts Squeezed as Stock Pops

OMER is trading above a key trendline today

Omeros Corporation (NASDAQ:OMER) earlier said it initiated the rolling submission process for a Biologics License Application (BLA) to the U.S. Food and Drug Administration for narsoplimab, its leading antibody to treat hematopoietic stem cell transplant-associated thrombotic microangiopathy (HSCT-TMA). The therapy already holds an orphan drug designation from the FDA.

Cantor Fitzgerald was quick to weigh in, saying if narsoplimab is approved, it could "generate meaningful revenue for OMER," and "unlock significant value in [the] shares." The brokerage firm -- which has a "overweight" rating and $26 price target on the equity -- said the "risk-reward is to the upside," and that Omeros stock creates a "compelling investment opportunity."

Against this backdrop, OMER stock is up 5.3% to trade at $16.77, set to close above its 30-day moving average for the first time since Sept. 17. The shares have been climbing since a mid-October bounce off familiar support near $14.80, and are now up nearly 50% year-to-date.

Should the shares stay hot, shorts could be encouraged to throw in the towel -- which may translate into buying power for OMER. Short interest jumped 4.1% in the most recent reporting period to 11.78 million shares, representing 25.4% of the stock's available float, or 27.9 times the average daily pace of trading.