Savara Inc. (NASDAQ:SVRA) Sees Significant Drop in Short Interest

Key Points

• Savara’s short interest fell 34% to 28.7 million shares as of October 15, from 43.6 million shares at the end of September. Despite the decline, 14.8% of shares remain sold short, representing 12.2 days of average trading volume.
• Savara shares opened at $4.82, within a 52-week range of $3.86 to $7.01. The clinical-stage biopharmaceutical company missed its latest earnings estimate, reporting a quarterly loss of $0.16 per share versus the expected $0.14 loss.
• Institutional investors own approximately 87.93% of the stock, while analyst sentiment remains broadly positive: seven analysts rate Savara a Buy and one a Sell, producing a consensus “Moderate Buy” rating and an average $10.25 price target.

Savara Inc. (NASDAQ:SVRA - Get Free Report) was the target of a significant decline in short interest in October. As of October 15th, there was short interest totaling 28,737,897 shares, a decline of 34.0% from the September 30th total of 43,563,969 shares. Based on an average daily volume of 2,349,629 shares, the short-interest ratio is presently 12.2 days. Approximately 14.8% of the shares of the company are sold short.

Savara Stock Performance

Shares of Savara stock opened at $4.82 on Monday. Savara has a 52-week low of $3.86 and a 52-week high of $7.01. The company has a quick ratio of 10.13, a current ratio of 10.13 and a debt-to-equity ratio of 0.21. The company's 50-day simple moving average is $5.07 and its 200-day simple moving average is $5.40. The firm has a market cap of $990.32 million, a price-to-earnings ratio of -8.31 and a beta of 0.32.

Savara (NASDAQ:SVRA - Get Free Report) last issued its earnings results on Tuesday, August 11th. The company reported ($0.16) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.14) by ($0.02). As a group, equities research analysts anticipate that Savara will post -0.66 earnings per share for the current year.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. Sterling Capital Management LLC boosted its stake in shares of Savara by 842.8% during the 3rd quarter. Sterling Capital Management LLC now owns 5,063 shares of the company's stock worth $26,000 after acquiring an additional 4,526 shares in the last quarter. Mirae Asset Global Investments Co. Ltd. acquired a new stake in Savara in the third quarter valued at $54,000. Principal Financial Group Inc. purchased a new position in shares of Savara in the first quarter valued at $57,000. Sequoia Financial Advisors LLC purchased a new position in shares of Savara in the second quarter valued at $69,000. Finally, E Fund Management Co. Ltd. purchased a new position in shares of Savara in the second quarter valued at $77,000. 87.93% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several research firms have recently weighed in on SVRA. Wall Street Zen downgraded Savara from a "hold" rating to a "sell" rating in a report on Sunday, October 4th. Royal Bank Of Canada set a $10.00 target price on shares of Savara in a research report on Wednesday, October 7th. JPMorgan Chase & Co. initiated coverage on shares of Savara in a report on Wednesday, October 7th. They issued an "overweight" rating and a $12.00 target price on the stock. Weiss Ratings restated a "sell (d-)" rating on shares of Savara in a research note on Thursday, October 15th. Finally, Citigroup reaffirmed a "market outperform" rating on shares of Savara in a report on Wednesday, October 7th. Seven equities research analysts have rated the stock with a Buy rating and one has given a Sell rating to the company. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $10.25.

Savara Company Profile

Savara Inc is a clinical-stage biopharmaceutical company focused on developing therapies for rare respiratory diseases. The company's work is centered on conditions with significant unmet medical needs, particularly diseases involving impaired lung function and abnormal accumulation of material in the lungs.

Savara's lead product candidate is molgramostim, an inhaled formulation of recombinant human granulocyte-macrophage colony-stimulating factor (GM-CSF). The therapy is being developed for autoimmune pulmonary alveolar proteinosis, a rare lung disorder in which surfactant accumulates in the airspaces and interferes with breathing.

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