3 Explosive Stocks With High Short Interest

"Viking Therapeutics (NASDAQ: VKTX): We mentioned this one yesterday, as well. Today, we're still watching the stock run with high short interest. With 23% of its float short, Viking Therapeutics has been gaining momentum. In fact, since bottoming out at around $25, it's now up to $38.88 and climbing. Fueling upside, analysts at Canaccord initiated coverage of the obesity treatment stock with a buy rating and a price target of $106 a share. VKTX is just starting to race higher again on obesity news."

"As noted in its most recent earnings report, "Pemvidutide demonstrated rapid and robust MASH effects, meaningful weight loss, and impressive safety and tolerability in the recently reported results from the IMPACT Phase 2b trial," said Vipin K. Garg, Ph.D., President and Chief Executive Officer of Altimmune. "We are preparing for an End-of-Phase 2 Meeting with the FDA, which will position us well for Phase 3 development.""

"Collegium Pharmaceutical (NASDAQ: COLL): With a short interest of 18.6%, Collegium Pharmaceuticals is also showing big signs of life. After finding strong support at $31.65, COLL is now up to $35.65 and could push aggressively higher. The company is benefiting from its ADHD medication, Jornay PM. In fact, as the company noted in a recent earnings release, "Following encouraging performance in the first half of the year, we anticipate a strong back-to-school season and"

Short interest signals investor bearishness and can also indicate potential for a short squeeze when a heavily shorted stock rallies or when positive news appears. Viking Therapeutics has 23% of its float short and has risen from about $25 to $38.88 after Canaccord initiated coverage with a buy rating and $106 price target on obesity-treatment optimism. Altimmune carries 24.5% short interest, trades near $4.07, and reported strong pemvidutide Phase 2b results while preparing an End-of-Phase 2 meeting with the FDA. Collegium shows 18.6% short interest, moved from $31.65 support to $35.65, and benefits from Jornay PM sales and seasonality.

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