The Biotech Stock Up Over 88%

By Patrick Martin / October 10, 2017 / www.schaeffersresearch.com / Article Link

U.S. stocks are higher today once again, as the Dow, S&P 500, and Nasdaq Composite all set fresh intraday highs this morning. Biotech stocks MannKind Corporation (NASDAQ:MNKD) and AnaptysBio Inc (NASDAQ:ANAB), as well as airline stock American Airlines Group Inc (NASDAQ:AAL), are soaring. Here's a quick look at what is moving shares of MNKD, ANAB, and AAL.

Analyst Initiates Bullish Coverage On MannKind Stock

MannKind stock is up 26% to trade at $6.76, among the best on the Nasdaq today and pacing for a seventh straight win, after H.C. Wainwright initiated coverage of the biotechwith a "buy" rating and $7 price target. The Food and Drug Administration (FDA) earlier this week gave the company permission to include new data on its label for inhaled insulin product Alfrezza, a decision Wainwright's analysts believe will make the treatment a market leader. The stock earlier touched an annual high of $6.96, and has tacked on over 109% year-to-date.

A short squeeze could push MKND stock even higher. Short interest has increased by 10% during the last reporting period to 23.22 million shares, the highest number since mid-June. This accounts for a whopping 32% of the stock's total available float, and it could take nearly six days for shorts to fully cover their positions, at MNKD's average daily trading volume. This represents a major source of potential buying power that could enter the market.

Upbeat Drug Data Takes ANAB Stock To New Heights

AnaptysBio stock is one of the top Nasdaq performers today, up an astounding 88% to trade at $65.86, after reporting positive topline data on its eczema drug. As a result, Baird, Credit Suisse, and Wedbush have raised their respective price targets to $69, $85, and $75. Safe to say investors are pleased with the stock's performance, since it began trading back on Jan. 26 at $16. Analysts are resoundingly upbeat, too. All five of the brokerages covering ANAB rate the shares a "strong buy" or "buy." Furthermore, the average 12-month price-target stands up at $44, which suggests more price-target hikes could be on the way.

American Airlines Stock Higher After Upbeat Outlook

American Airlines today raised its third-quarter growth outlook for total revenue per available seat miles (TRASM). As a result, Cowen and Company raised its price target one dollar to $56, while UBS said a weaker dollar could help all U.S. airlines. At last check, the stock is up 4.2% to trade at $52.71, and has tacked on almost 36% year-over-year. The airline name struggled the past two months as hurricanes wrecked America's Gulf Coast, but AAL shares found support along their 320-day moving average. A similar bounce from this trendline back in mid-March resulted in a multi-month rally that culminated with their July 13 annual high of $54.48.

The airliner's upbeat outlook may cause options bears to head for the hills. The security sports a Schaeffer's put/call open interest ratio (SOIR) of 0.69, which ranks in the 76th percentile of its annual range. This means short-term options traders have favored puts more than normal of late.

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