Penny Stock Pops on Parkinson's Treatment Progress

Axovant stock is pacing for its best day in months

The shares of biotechnology concern Axovant Sciences Ltd (NASDAQ:AXGT) are up 54% at $2.28 in early trading after announcing successful phase 2 trial results for itsParkinson's treatment, AXO-Lenti-PD. The news has the penny stock at the top of the Nasdaq and pacing for its best day in months.

The equity has filly its early December bear gap in today's surge and just broke north of its 320-day moving average for the first time since 2017. Prior to today's pop, the shares were making steady progress off their Jan. 23 all-time-low of $0.93 and were already up 48.6% year-to-date with some help from their 20-day moving average.

Four of the seven analysts following Axovant Sciences give it a "buy" or better rating, but some remain hesitant, with three tepid "holds" on the books. However, the relatively lofty consensus 12-month target price of $5 still holds a significant premium.

An unwinding of bearish bets could propel the security higher, too. Before today, the 5.15 million shares of AXGT sold short represented a healthy 9.2% of the stock's available float. As such, some gains for the shares could be from short sellers covering their positions.