Biotech stocks we follow were big movers Tuesday, and here are four to watch for continued upside.
Regenxbio Inc. (NASDAQ:RGNX) exploded up 18%, or $5.95, to close at $37.40 on very heavy volume of 1.2 million shares traded Tuesday. That is more than three times its average volume. The move was a follow-through from Monday's surge that came on news that business partner, AveXis (NASDAQ:AVXS), also in the gene therapy space, is being acquired by Novartis (NYSE:NVS). Next target is $40-41.
Tandem Diabetes Care Inc. (NASDAQ:TNDM) tore up 22%, or $1.29, closing at $7.01 on huge volume of 6.6 million shares traded. That is more than four times its average volume. The move came as the medical device company announced preliminary financial results indicating insulin pump shipments increased by 56 percent and sales by 42 percent in the first quarter of 2018 compared the first quarter of 2017. Having moved up with high velocity, the stock has appreciated a whopping 89% in value in the last three weeks. On March 23, Robert W. Baird upgraded the stock from neutral to outperform with a price target lifted from $3 to $7. Price is at the top of its channel, so expect a potential short-term pullback. Next target: $8.50.
Vericel Corporation Corp. (NASDAQ:VCEL)) sprang out of a bull flag consolidation Tuesday, closing up 11% to $12.00 on 1.3 million shares traded. The move came with news that the tissue therapy company's CEO will present at an industry investor day on April 17. Price had leapt dramatically on March 5 after the biopharma company reported record revenues and improved net income for the 2017 fourth quarter and full year. If the stock can close above the March 7 high of $12.80, the next target is $15.
Xencor Inc. (NASDAQ:XNCR) rose out of a 18-day falling wedge pattern to close the day up 6%, or $1.78, at $30.19 on casual volume of 452,700 shares traded on no news. The clinical-stage biopharmaceutical company is developing engineered monoclonal antibodies for the treatment of autoimmune diseases, asthma and allergic diseases and cancer. Price has risen nearly 40% in the last two months. With a close above $31.50, the next target is $34.50.