What’s Next For Sorrento After A 35% Move In Last 5 Trading Days?

Sorrento Therapeutics (NASDAQ: SRNE) stock, a clinical stage biopharma company that develops treatments for cancer and neurodegenerative diseases among others, has rallied by a solid 42% over the last 10 trading days, while it is up 35% over the last 5 trading days. This can be attributed to the positive data for its experimental STI-2020 antibody therapy with the new Covid-19 variants identified in the U.K. and South Africa. In comparison, the broader S&P 500 grew just 1.5% over the last 5 trading days. Now, is SRNE stock poised to grow further? We believe that some of the positives around STI-2020 are already priced in given the recent rally, and the company’s stock could decline going forward. Specifically, there is a 64% chance of a drop in SRNE stock over the next month (21 trading days) based on our machine learning analysis of trends in the stock price over the last 5 years. See our analysis on Sorrento Therapeutics Stock Chances of Rise for more details. Curious about the possibility of rising over the next quarter? Check out the SRNE Stock AI Dashboard: Chances Of Rise And Fall for a variety of scenarios on how SRNE stock could move.

5D: SRNE 35%, vs. S&P500 1.5%; Outperformed market

(4% likelihood event)

  • Sorrento Therapeutics stock rose 35% over a 5-day trading period ending 1/20/2021, compared to broader market (S&P500) rise of 1.5%
  • A change of 35% or more over 5 trading days is a 4% likelihood event, which has occurred 45 times out of 1256 in the last 5 years

10D: SRNE 42%, vs. S&P500 3.5%; Outperformed market

(13% likelihood event)

MORE FOR YOU

  • Sorrento Therapeutics stock rose 42% over the last 10 trading days (2 weeks), compared to broader market (S&P500) rise of 3.5%
  • A change of 42% or more over 10 trading days is a 13% likelihood event, which has occurred 171 times out of 1240 in the last 5 years

While SRNE stock may be overvalued, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. For example, you’ll be surprised how counter-intuitive the stock valuation is for Pfizer vs Merck.

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