NPSP: Medium/LT Prospects Good.....Near Term Stock May be Overextended
NPSP stock is correcting amid a broader weakness in the Pharma/Biotech sector. The market stage is framed today by the earnings miss at Pfizer and the weakness of the big three biotech’s, Biogen, GILD, and Celgene. Even high beta Regeneron is retrenching. NPSP stock technical’s are also under stress. RSI is declining. 6 insider sale transactions by CEO, CFO and other officers at prices averaging $ 10, and 1 buy transaction. The stock has very high short interest @ nearly 15%, well above the 10% threshold for concern. One measure of investor expectation is to follow options. The preponderance of volume for May 18 call and put contracts are below $ 11.The stock could test the $ 10.15, 50 day SMA April low this week.
I don't know much about the technical details you mentioned, but I have one question that maybe you can answer. To get the price down to 10.15, do the institution need to dump their shares since they own 90%?
True enough, as indicated in my posting, I believe that the medium and long term prospects of NPSP are favorable, but it is fighting powerful negative short term head winds. The market stage is framed by yesterday’s earnings miss at Pfizer, today’s disappointment at Allergan, Biogen’s downgrade by Goldman, and the weakness of the big three biotech’s, Biogen, GILD, and Celgene. Consistent with my concern's, the stock is down nearly 5% today. As indicated " The stock could test the $ 10.15, 50 day SMA April low this week."