Human Genome Jumps On Takeover Rumors

Human Genome Sciences (HGSI) is catching some aggressive bids on heavy volume, which looks — at least for the time being — entirely consolidative in nature. The stock rose 6.3 percent to $26.18 and rose as much as 9.04 percent earlier, the most intraday since Nov. 5. The move is attributed to a Bloomberg report that the biopharmaceutical company “may become a takeover target” if a lupus treatment it’s developing becomes the first such drug to win FDA approval next month in more than a half century.

From a technical perspective, shares of HGSI have recently based along the lows near the $24.50 area as the stock continues to try and defend its 20-day MA located in the $26.15 level. While the ticker has underperformed the broader S&P 500 Index (SPX) by a negative 14.66% during the past 52 weeks, it has since bounced off the mid – $21 level in early July, and has re-entered the upside territory.  More specifically, the security is now attempting to plow its way through the $27-$28 and consequently the $29-$30 neighborhood, which has capped HGSI’s breaking res attempts since September. Having said that, not every trader is so optimistic about HGSI. Short interest accounts for 4.20% of the stock’s total available float, which currently stands at 188.1 million.

At last check, shares of the $4.9 billion market co. were up 8.20% to $26.38, a gain of $2.05. Today’s volume is massive: nearly 5.1 million shares by 2:22 p.m. ET. HGSI’s average volume over the last 12 weeks is 2.7 million shares.

About Ron Haruni 1036 Articles
Ron is the Co-Founder & Editor in Chief of Wall Street Pit. Web Site: Wall Street Pit

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