Our Stock of the Week is Olema Pharmaceuticals (OLMA). OLMA develops drugs for cancers impacting women. In a recent Phase 2 study of its palazestrant drug, the data was very strong. OLMA is targeting two large markets that are worth over $15 billion.
Olema plans to announce at the San Antonio Breast Cancer Symposium on December 5-9, 2023, the results of a study combining palazestrant with Novartis’ (NVS) cancer drug, Kisqali, which is already FDA-approved. OLMA expanded the study of the drug in October, and the CEO commented, “You can infer we saw something to support doing that expansion.”
An excellent article about the company by Allison Gatlin can be found here.
Analysts are very positive on the stock, with seven strong buys and price targets ranging from a high of $28 from JPMorgan (JPM) to a low of $21 from Oppenheimer. The average target price is $25.
The stock pulled back to support last week to around $13.50 following news of a cluster of insider selling. Insider selling can occur for any number of reasons, especially when insiders are finally seeing a big rise after years of little appreciation. There is always the concern that the selling is driven by knowledge of something negative, but Form 144 requires that the seller represent that he does not know of any adverse information in regard to the current and prospective operations of the issuer of the stock.
The indications are that OLMA should have some positive news coming, but this is a speculative bet, and the risk is high. We are looking for some positive anticipation to help the stock bounce.
As always, we will not chase strength on Monday but will be aggressively trading the stock into volatility and any upcoming news.
This post is for educational purposes only! This is not advice or a recommendation. We do not give investment advice. Do not act on this post. Do not buy, sell, or trade the stocks mentioned herein. We WILL actively trade this stock differently than discussed herein. We will sell into strength and buy or sell anytime for any reason. We will actively trade into any unusual activity. At the time of this post, principals, employees, and affiliates of Shark Investing, Inc. and/or principals, clients, employees, and affiliates of Hammerhead Financial Strategies, LLC, directly or indirectly, controlled investment and/or trading accounts containing positions in OLMA.. To accommodate the objectives of these investing and/or trading accounts, the trading in these shares will be contrary to and/or inconsistent with the information contained in this posting.
