Short Sellers Become More Focused on Big Pharma

Health and Healthcare

Published: June 25, 2015 8:10 am

The short interest data has been released for the June 15 settlement date. Pharmaceutical companies are usually involved in a lengthy process in getting their drug candidates to market through clinical trials. There is a fair amount of risk involved, should a study come back negative or a candidate not be approved. Conversely, if a drug is approved or passes a clinical trial, there can be big upside.

The June 15 short interest data have been compared with the previous figures, and for the selected stocks, short interest is mixed.

Pfizer Inc. (NYSE: PFE) saw its short interest increase to 73.77 million shares from the previous 62.91 million. In February, short interest spiked incredibly, and since that time it has slowly backed off. The highest short interest reading on the year was 207.4 million. Shares of Pfizer closed Wednesday at $34.23, within a 52-week trading range of $27.51 to $35.53.

Merck & Co. Inc. (NYSE: MRK) saw its short interest increase to 32.11 million shares from 31.49 million in the previous period. The current and previous readings are some of the highest in the past 52 weeks. Merck shares closed Wednesday at $58.24, in a 52-week trading range of $52.49 to $63.62.

Teva Pharmaceutical Industries Ltd. (NYSE: TEVA) short interest fell to 5.87 million shares. The level for the previous settlement date was 6.47 million. Shares of Teva closed Wednesday at $59.37, in a 52-week range of $47.36 to $68.75.

ALSO READ: Short Sellers Get More Selective on Big Biotech

Bristol-Myers Squibb Co. (NYSE: BMY) saw its short interest rise to 23.38 million shares from the previous reading of 22.12 million. The past few readings, including the current one, are the lowest short interest of the year. Bristol-Myers shares closed Wednesday at $66.81, within a 52-week trading range of $47.34 to $69.86.

AbbVie Inc.‘s (NYSE: ABBV) short interest decreased to 86.38 million shares from the previous level of 92.46 million. Short interest has backed off its highest level year to date; the highest reading in the past 52-weeks was 111.88 million. Shares of AbbVie closed Wednesday at $69.22, in a 52-week trading range of $51.37 to $70.76.

It’s Your Money, Your Future—Own It (sponsor)

Retirement can be daunting, but it doesn’t need to be.

Imagine having an expert in your corner to help you with your financial goals. Someone to help you determine if you’re ahead, behind, or right on track. With SmartAsset, that’s not just a dream—it’s reality. This free tool connects you with pre-screened financial advisors who work in your best interests. It’s quick, it’s easy, so take the leap today and start planning smarter!

Don’t waste another minute; get started right here and help your retirement dreams become a retirement reality.