Investing.com — Investors who bet against Moderna Inc faced $4.8 billion in mark-to-market losses on Wednesday according to ORTEX data, after the biotech company’s stock more than doubled following positive results from its personalized mRNA cancer therapy trial.
The stock reached $159, leaving short sellers down almost $100 per share from prior close of $62.96. Moderna shares climbed as high as $163 before pulling back to trade at $148.3.
“With each shorted share now down almost $100, that is exactly the kind of pressure that can trigger a squeeze,” said Peter Hillerberg, co-founder of data analytics firm ORTEX. “There is clearly a real catalyst behind a move this size, but with a short base this large, shorts scrambling to cover are adding fuel and can keep driving the price higher.”
Short interest in Moderna stood at 13.5% of its free-float as of Wednesday, ranking it among the most-shorted large-cap stocks, according to ORTEX estimates.
The stock surge came after Moderna reported that its personalized mRNA cancer therapy, developed with Merck & Co Inc, reduced the risk of skin cancer recurrence and spread in a late-stage trial when combined with Keytruda.
The stock is on track for a record one-day percentage gain.
Related articles
Moderna short sellers face $4.8 billion loss amid record stock jump
U.S. bonds rally as Washington moves to backstop U.S. Treasury market
Marvell shares jump after giving Google warrants amid custom chip deal
Source link
