Traders Anticipating Move from Catabasis Pharmaceuticals Inc. (NASDAQ:CATB)

Catabasis Pharmaceuticals Inc. (NASDAQ:CATB)

At 11:45 AM EST, CATB shares are up 75% and trading at $2.32. The reported average daily volume for biotech firm Catabasis Pharmaceuticals, Inc. (NASDAQ:CATB) is 173,000 shares. Today, before lunch, over 36 million shares have traded hands. That equates to a pro-rata relative volume of 173 times the normal average daily volume. Catabasis has several drugs in the pipeline as we will show below, however there is no announcement of clinical trial data or of any corporate activities that normally accompany such a volume increase. The company is expected to provide Q4 and full year financial results on March 16, 2017.

The catalyst for the dramatic increase in volume might be a positive reception to an investor presentation given by Catabasis at Cowan and Company’s 37th Annual Health Care Conference. That presentation was given on March 8th and the shares have risen in the past two days on strong volumes.

Despite trading over 70% below their 52-week high, of the four analysts that cover Catabasis Pharmaceuticals, Inc. (NASDAQ:CATB), three assign CATB shares a rating of “Strong Buy” – one is neutral on the stock. CATB has been volatile over the last year. It has reached a high of $7.89 and a low of $1.08. Given the recent price action, traders may be betting that the March 16th financials may help propel CATB back towards their 52-week highs. Why would they believe that? It is possible the Cowan and Company presentation planted those seeds of belief. Here is a screen shot of their pipeline as presented to the conference:

 

The investor presentation provided Catabasis’ anticipation of the following activity in 2017:

  • JCI Insight will publish preclinical results for edasalonexent.
  • The Journal of Clinical Pharmacology will be publishing results of edasalonextent’s Phase 1 trial.
  • CAT-5571 preclinical results will be published in the Journal of Medical Chemistry.
  • Catabasis will announce top-line results from Part B of the MoveDMD trial.

Keep an eye out for StockNewsUnion to update this developing story after Q4 financial results are announced by Catabasis Pharmaceuticals Inc. (NASDAQ:CATB) next week. In the meantime, keep an eye on CATB as it could offer some real opportunities at these volumes and volatilities for a skilled trader.

3/10/2017
Ticker Symbol CATB
Last Price a/o 11:32 AM EST  $                      2.18
Average Volume                    605,290
Market Cap (mlns)  $                    25.66
Sales (mlns) $0.00
Shares Outstanding (mlns) 19.29
Share Float (mlns) 16.37
Shortable Yes
Optionable No
Inside Ownership 4.20%
Short Float 3.58%
Short Interest Ratio 0.97
Quarterly Return -64.15%
YTD Return -63.16%
Year Return -80.92%

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy. 

About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

Author: Marcus Anderson

Marc has a degree in economics and a MSc. in Finance. Marc worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

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