The Drug Stock that's Tripled in Value Today

By Patrick Martin / October 03, 2017 / www.schaeffersresearch.com / Article Link

U.S. stocks are trading higher again this afternoon, with the S&P 500 Index, Dow and Nasdaq Composite all touching fresh intraday record peaks. Airline stock Delta Air Lines, Inc. (NYSE:DAL) is enjoying a strong day, while biopharmaceutical stocks Celsion Corporation (NASDAQ:CLSN) and RedHill Biopharma Ltd (NASDAQ:RDHL) are trending in opposite directions. Here's a quick look at what is moving shares of DAL, CLSN, and RDHL.

Delta Air Lines Stock Taking Off After Encouraging Forecast

Delta Air Lines gave a better-than-expected forecast following the devastation wrought by Hurricane Irma, news that's lifting the wider airline sector. DAL stock, already one of the best stocks to buy in October, is currently up 6.5% to trade at $51.18, bringing its year-over-year lead to greater than 28%. This marks the airline'slargest one-day gain in over two years and takes the shares past their 80-day moving average for the first time since Aug. 8. Meanwhile, analysts are overwhelmingly upbeat. Of the 15 brokerages covering DAL stock, 14 rate the shares a "buy" or better.

Positive Ovarian Cancer Drug Results Fuel Red-Hot Celsion Stock

Celsion stock has more than tripled in value today, up 250% to trade at $5.31, coming in as the top gainer on the Nasdaq, after encouraging early stage trial results for its stage III ovarian cancer treatment. The stock's performance today represents a whopping 310% increase from its Aug. 22 low of $1.24. The shares are now trading above their 200-day moving average for the first time since July 2015.

A short-squeeze could fuel an extended rally. Short interest decreased by 2.3% during the last reporting period, and represents 10% of CLSN's total available float. It would take roughly a week for the shorts to fully cover their positions, at CLSN's average daily trading volume. This represents a major source of buying power that could enter the market.

RedHill Biopharma's IBS Drug Fails To Impress Investors, Stock Sinks

RedHill Biopharma stock is down 14% to trade at $9.37, among the worst on the Nasdaq and currently short-sale restricted. Bekinda, the company's drug for irritable bowel syndrome (IBS) met its main goals in a mid-stage study but failed to impress investors with improvement in abdominal pain and overall response. The shares traded as low as $8.80 today, flirting with their July 11 low of $8.16. Continued technical struggles could have analysts reevaluating their upbeat outlooks. Both analysts covering RDHL shares rate it a "strong buy."

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