Zynerba Pharmaceuticals Stock Set to Soar on CBD News

ZYNE has already added 70% so far this year

The shares of Zynerba Pharmaceuticals Inc (NASDAQ:ZYNE) are soaring in electronic trading trading, last seen up 15.3%. Boosting the stock is news the drug name received a U.S. patent for its cannabidiol (CBD) treatment for Fragile X syndrome.

With today's expected surge, the stock is set to break back above the 120-day trendline -- a mark that has acted as a ceiling of resistance for the shares off and on since early 2018. ZYNE has added 70% year-to-date, through last night's close at $5.04.

While analysts have yet to react to the company's patent news, a majority of brokerages following the firm sported "strong buy" ratings coming into today. Plus, the stock's average 12-month price target stands at $16.40, a significant 225% premium to current levels.

Short sellers have targeted the stock, though. Short interest on ZYNE rose 8.3% during the past two reporting periods, and these bearish bets now represent a healthy 14.9% of the stock's total available float. At the equity's average daily pace of trading, it would take shorts less than two days to cover their bearish bets.