Healthcare Business

Huge PowerShares ETF Rebalance Means Massive Buying for 4 Biotech Stocks

On the close Tuesday, the PowerShares Dynamic exchange traded funds (ETFs) are set for a rebalance. What this means is the 15 individual ETFs in the Dynamic family will be rebalanced to reflect reweighting allocations across the stocks that make up the various portfolios. It also means there will be some serious buying and selling on the last print Tuesday.

The PowerShares Dynamic family of ETFs seek investment results that correspond to the price and yield of the Intellidex indexes, which are fundamentally weighted. In a research note, the analysts at Cowen have calculated the buys and sell in the various portfolios, and we found four stocks that are expected to have huge buying on the close Tuesday.

Geron

This stock will see an incredible volume buy on the close. The Cowen team expects that 2,645,600 shares of Geron Corp. (NASDAQ: GERN) will be purchased. That will represent a huge 140% increase in volume over the 10-day average trading volume percentage.

Geron is a clinical stage biopharmaceutical company focused on the collaborative development of a first-in-class telomerase inhibitor, imetelstat, in hematologic myeloid malignancies.

The Thomson/First Call consensus price target for the stock is $5.75. Shares closed most recently at $5.10.

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Novavax

This very hot biotech stock and will see significant buying on the close. Cowen thinks that a whopping 3,226,600 of Novavax Inc. (NASDAQ: NVAX) shares will be bought. That represents an 80% increase in volume over the 10-day average.

This clinical-stage vaccine company delivers novel products to prevent a broad range of infectious diseases. Novavax’s recombinant nanoparticles and Matrix-M adjuvant technology are the self-described foundation for groundbreaking innovation that improves global health through safe and effective vaccines.

The consensus price target for Novavax is a massive $16.35. The stock closed Monday at $8.56 per share.