On the close Friday, the NYSE Arca Biotechnology Index (NYSE: BTK) is set for a rebalance. What this means is the index will be adjusted to reflect equal dollar weight allocation across the 30 stocks that make up the index. It also means there will be some serious buying and selling on the last print Friday.
A research note from the analysts at Cowen calculates the buys and sells in the index based on the holdings in the First Trust Biotechnology Index Fund (NYSE: FBT), which essentially mirrors the index. We screened the list for the stocks that could see the highest amount of share count buying.
Nektar Therapeutics (NASDAQ: NKTR) will see a landslide of buying on the close. The Cowen team estimates that a gigantic 3,029,900 shares of the stock will be purchased. That represents 250% increase in the 10-day average volume count, which is 1.21 million shares. Nektar Therapeutics is a biopharmaceutical company that develops drug candidates that utilize its PEGylation and polymer conjugate technology platforms in the United States. Shares closed trading Thursday at $12.13.
PDL BioPharma Inc. (NASDAQ: PDLI) will also see shares being gobbled up on the close Friday. Cowen estimates that 2,387,500 shares will be purchased. That represents a 67% increase in the 10-day average volume count, which comes in at 3.58 million shares. The company manages a portfolio of patents and royalty assets, consisting of its Queen et al. patents, license agreements with various biotechnology and pharmaceutical companies, and royalty and other assets acquired. Shares closed most recently at $7.18.
Agios Pharmaceuticals Inc. (NASDAQ: AGIO) is a new addition to the index on Friday, and a huge 1,245,500 shares of the stock are estimated to be purchased. That will represent a monstrous 316% increase over the 10-day average, which is posted at 394,000 shares. The company is focused on discovering and developing novel investigational medicines to treat cancer and rare genetic disorders of metabolism through scientific leadership in the field of cellular metabolism. The stock closed trading on Thursday at $106.69 up over 8%.
Exact Sciences Corp. (NASDAQ: EXAS) is another stock that will see a monster buy Friday. The estimates are for 1,134,400 shares to be purchased, which will represent a 10-day volume increase of 93%, versus the current 1.21 million shares rate. This molecular diagnostics company is focused on the early detection and prevention of colorectal cancer. The stock closed Thursday at $24.09.
While it is no secret that these additions and purchases will be made, it certainly will put a floor under these stocks. It also gives sellers a chance to have market-on-close sell orders in to match up with all the buying.