As short squeeze momentum goes in overdrive, retail investors are hand-picking more intriguing names to go after. Today’s 15% rise in Inovio Pharmaceuticals (NASDAQ:INO) and INO stock highlights this point clearly.
Now, biopharmaceutical plays have traditionally been one high-volatility segment of the market traders have targeted. These stocks tend to provide large swings that traders can take leverage. For Inovio, a rather high short volume ratio of 25% adds yet another catalyst for speculators today.
The company’s long-standing partnership with Regeneron (NASDAQ:REGN) on an immune-oncology glioblastoma therapy has prompted speculation Regeneron could eventually buy out Inovio. How much truth these rumors have remains to be seen. However, any time a company with a $55 billion market capitalization partners with a company like Inovio with a $2 billion market cap, such speculation makes sense.
Thus, the rumor mills on social media have once again lit up. Retail investors are increasingly focusing on INO stock as a potential squeeze candidate, with some “moon shot” attributes given various factors. Let’s dive into two of the key things retail traders are focusing in on today.
2 Reasons Why INO Stock Is Taking Off Today
In addition to the company’s core drug/therapeutics portfolio, Inovio is also working on a Covid-19 vaccine. The company’s INO-4800 vaccine has become a focal point of investors of late. As global vaccination efforts ramp up, there may be more room for additional vaccine players. That is, if Inovio can get its vaccine approved in short order.
Yesterday, the company announced an expanded vaccine partnership with Advaccine for its INO-4800 vaccine. This partnership calls for both parties to conduct a Phase 3 trial for this vaccine. Indeed, this announcement is big news for the company, and is cause for more speculative buying today.
Additionally, Inovio’s aforementioned high level of short interest is prompting further speculation this company could be a short squeeze target. Various posts on Reddit highlight this thesis. Indeed, given the momentum around such plays today, more volatility can be expected on the horizon for INO stock.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.