Allogene Short Interest Reportedly Near 5-Year Lows Amid Growing Retail Optimism: Analyst Sees CAR-T Therapy Promise

Allogene Therapeutics Inc. surged over 42% last week amid a bullish analyst take on its latest immuno-oncology update and a report showing short interest in the stock at multi-year lows.

According to The Fly, citing Ortex.com data, Allogene's estimated short interest hit its lowest level in nearly five years in mid-January at around 20%, despite the stock's decline in early February. 

However, following the Feb. 14 release of ALPHA/ALPHA2 trial data for cemacabtagene ansegedleucel in relapsed/refractory large B-cell lymphoma, shares more than doubled in two trading sessions before succumbing to broader market volatility.

Short interest has since risen to 23.6%, a three-month high, indicating bears are not too skittish, according to the report.

Data from Koyfin shows Allogene's highest short interest over the past five years was 28.38% in April 2023.

According to The Fly, Baird remains bullish on Allogene, stating that the updated cemacabtagene ansegedleucel (cema-cel) data continues to support the "differentiated durability" of its allogeneic CAR-T therapy. 

In the next trial, the research firm sees potential for cema-cel to improve outcomes for low-disease-burden patients in front-line consolidation settings. It maintains an 'Outperform' rating on the stock.

Retail sentiment on Stocktwits has flipped from 'bearish' to 'extremely bullish' within a month, with message volume jumping 1,200%.

One user suggested institutions could push the stock to over $10 — implying a near five-fold jump from current levels — while another highlighted Pfizer's prior $22 million investment, calling Allogene a "buy and forget" play.

Meanwhile, Allogene received FDA clearance in January to begin Phase 1 trials for its ALLO-329 drug candidate in systemic lupus erythematosus. 

The study will launch by mid-2025 and will evaluate ALLO-329 in lupus nephritis, idiopathic inflammatory myopathies, and systemic sclerosis.

Allogene shares remain down nearly 1.4% year-to-date.

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