Short Selling

Clovis’s Stock price got a boost with Positive Research news

In the picture with the blur background, one syringe and two transparent glass injection bottles are exhibited.

Founded in 2009 in the US, Clovis Oncology (CLVS: US) is a biopharmaceutical company focused on advancing medicine and solutions for cancer. The company mainly focuses on acquisitions of treatments internationally. 

The price of Clovis’s stock however has been taking a downturn since last year. In a recent turn of events, the company divulged optimistic results from an ongoing study. 

Shorting in contrast to Price Rise

Clovis Oncology’s short selling data is still raging. From April 04 to 13, CLVS’s utilization rate was at 100%. The amount of total shares on loan is 42,995,708, which is a significant decline from April 04, when the shares on loan were 45,703,644. In addition to this, the short interest is standing at 15%.

On March 31, CLVS stock price skyrocketed according to a news report regarding their positive clinical tests. The stock closed at $1.65 on March 30. The next day, on the day of the clinical test, the stock opened at a whopping $2.33 and ended the day with a closing price of $2.02. This difference in closing prices marked a price of 22.42% in a single day. 

Since then, the price has been trending higher, closing at $2.96 on April 05. The price took a small dive since then but is now currently at a steady phase.

Different short selling measures are depicted in this diagram, which gives shorting statistics.

Pharmaceutical stock to Meme stock

What didn’t aid the stock were its Q4 and 2021 earnings as unveiled on February 23. The company reported a 10% decline in its total product revenues for 2021, as compared to revenues fetched in 2020. Also, the costs of the company’s research in 2021 were down by almost 28% as well when comparing them to the previous year. 

Clovis’s primary product is the drug named Rubraca, which works by releasing a DNA repair enzyme that stops cancer cells from reforming in cancer patients. The drug has been tested for advancing treatment amongst patients, and recently gave positive results for female patients with ovarian cancer.

CLVS’s stock price enjoyed a good beginning to 2021, closing at $10.34 on February 08, 2021. Since then, however, the stock has fallen significantly and ended the year by closing at $2.71. The same year however, the stock garnered a following online, ultimately earning its own subreddit, r/CLVSstock, on March 01, 2021. According to a recent Reddit poll, CLVS was the second most mentioned stock on reddit's r/Stockmarket

Due to its price decline in the past couple of years, CLVS is a tricky stock. The reason for this is that pharmaceutical companies, like Clovis, require years of research to advance their products and these are what propel the stocks to go higher. Regardless, CLVS is possibly headed for a short squeeze and is considered a wise penny stock to invest in at present. 

Recent Articles