A Lot of Traders Are Still Shorting Leap Therapeutics, Inc. (LPTX)

For the period that ended December 13, 2019, the short interest in Leap Therapeutics, Inc. (NASDAQ:LPTX) stock is on the down. The 10.41% decline could be an indication that investors and traders expect a growth in the share price, often as a result of an advancement in the business’ fundamentals. The average brokerage opinion at 2 suggests acquiring these shares. Between November 29 and December 13, the total count of shorted shares totalled 924.81 thousand. That number was 107,490 less shares compared with the total of 1.03 million shares in the space of prior two weeks, which suggests more traders or funds are betting that the company stock will move up. The average daily volume for LPTX at the December 13th settlement retreated to 124,949, versus 177,403 at the November 29th report. That led days to cover to move at 7.401524, a 27.2% increase compared to the 5.818971 days to cover recorded at the prior short interest data release.

On January 03, 2020, Leap Therapeutics, Inc. (NASDAQ:LPTX) shares gained 51.93% or 0.55 points to close at $1.61 with a heavy trading volume of 16.812 million shares. The company now has a market cap of $37.45 million and currently has 23.26 million outstanding shares. Leap Therapeutics, Inc. (LPTX) stock has accumulated 109.09 percent of market value in 21 trading days.

LPTX stock’s trailing 3-year beta is 0, meaning there will be a lower rate of return, although posing a lower risk. The part of a firm’s profit given to each outstanding share of regular stock was -$1.06 share in the trailing 52 weeks. The stock’s value surged 43.75 percent year to date (YTD) compared to a decline of -36.86 percent in 52 week’s period. The firm’s shares are still trading -53.8 percent below its 1-year high of $3.48 and 181.08 percent up from 52-week low of $0.57. The average consensus ranking on the company is 2, on a ranging where 5 is equal to a consensus sell rating. In other words, the mean analyst recommendations are ranking this stock as a buy.

Past records have indicated that shares in Leap Therapeutics, Inc. rose on 6 different earnings reaction days and we have yet to see whether this trend will play out and remain in place when the company reports upcoming earnings.

Let’s take a glimpse at some insider activity at Leap Therapeutics, Inc. (NASDAQ:LPTX) and observe the pattern. The earliest insider trade happened on 02/05/2019. ONSI DOUGLAS E gathered a total of 571.43 thousand shares of the firm at average share price of $1.75. The total amount for the purchase was set at $1000 thousand. On completing this exchange, the CFO, GC, Treasurer & Secretary, 10% Owner account balance was 4.46 million shares. The stock lost -8 percent from that insider purchase. On 02/05/2019, LAWLOR AUGUSTINE, COO, 10% Owner, did a purchase of 571.43 thousand shares at a price of $1.75 per share. This increased 1000 thousand shares to the insider’s fortune and the stock experienced a -8 percent retreat in price since the news became public. This exchange saw 7.08 million shares get into the COO, 10% Owner account.

On 02/05/2019, CEO, President, Chairman, 10% Owner Mirabelli Christopher recorded a purchase transaction valued at $1000 thousand. The purchase at $1.75 a share has added 571.43 thousand shares into the insider’s portfolio position. Meanwhile, shares price witnessed -8 percent decrease since the transaction reporting date. The company insider is left with 7.08 million shares remaining in the account. HealthCare Ventures IX, L.P., who works as 10% Owner at the company, performed a purchase of 571.43 thousand shares in a transaction worth $1000 thousand. The acquisition recorded on 02/05/2019 was priced at $1.75 per share. The stock price plunged -8 percent since the transaction. HealthCare Ventures IX, L.P. currently holds a stake of 4.14 million in LPTX stock which is worth $6.67 million after the insider buying.

The stock is lingering around the initial support level of $1.3. After this, the following support is at the zone of $1. Up until the time the LPTX stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 80.01 on the daily chart, and this may be a cause for concern. In case the price goes below $1 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $1.93 level may cause a pull-back move approaching $2.26 mark.

Leap Therapeutics, Inc. (LPTX) shares are trading at a P/E ratio of -1.06 times earnings posted in the trailing 12 months. The industry LPTX deals with has an average P/E of 25.85. Its P/B ratio is standing at -2.11X compared to the 11.46 industry average.