Cempra Inc Can Burn Your Long Portfolio. Option Traders Are Bearish

 Cempra Inc Can Burn Your Long Portfolio. Option Traders Are Bearish

In today’s session Cempra Inc (CEMP) recorded an unusually high (392) contracts volume of put trades. Someone, most probably a professional was a very active buyer of the October, 2016 put, expecting serious CEMP decrease. With 392 contracts traded and 6324 open interest for the Oct, 16 contract, it seems this is a quite bearish bet. The option with symbol: CEMP161021P00022500 closed last at: $1.4 or 40% up. About 434,963 shares traded hands. Cempra Inc (NASDAQ:CEMP) has risen 27.70% since March 2, 2016 and is uptrending. It has outperformed by 19.44% the S&P500.

Analysts await Cempra Inc (NASDAQ:CEMP) to report earnings on October, 27. They expect $-0.64 earnings per share, down 1.59% or $0.01 from last year’s $-0.63 per share. After $-0.51 actual earnings per share reported by Cempra Inc for the previous quarter, Wall Street now forecasts 25.49% negative EPS growth.

Cempra Inc (NASDAQ:CEMP) Ratings Coverage

Out of 9 analysts covering Cempra (NASDAQ:CEMP), 8 rate it a “Buy”, 0 “Sell”, while 1 “Hold”. This means 89% are positive. Cempra has been the topic of 13 analyst reports since July 30, 2015 according to StockzIntelligence Inc. The firm has “Outperform” rating by Raymond James given on Tuesday, September 13. Leerink Swann initiated the stock with “Mkt Perform” rating in Tuesday, October 13 report. The firm earned “Buy” rating on Tuesday, August 2 by Jefferies. The firm earned “Equal-Weight” rating on Thursday, August 13 by Morgan Stanley. The rating was maintained by Stifel Nicolaus on Friday, October 23 with “Buy”. The firm earned “Overweight” rating on Monday, November 16 by Morgan Stanley. The firm has “Buy” rating given on Monday, October 19 by TH Capital. Needham maintained Cempra Inc (NASDAQ:CEMP) on Thursday, July 30 with “Buy” rating. Stifel Nicolaus maintained Cempra Inc (NASDAQ:CEMP) on Friday, June 24 with “Buy” rating. The rating was initiated by Janney Capital with “Buy” on Friday, December 11.

According to Zacks Investment Research, “Cempra Holdings, LLC is a pharmaceutical company engaged in developing antibiotics for the treatment of bacterial infectious diseases. It focuses on developing antibiotics for treating respiratory tract, skin and skin structure infections and to target the growing problem of antimicrobial resistance. Cempra Holdings, LLC is headquartered in Chapel Hill, North Carolina.”

Insitutional Activity: The institutional sentiment increased to 2.27 in 2016 Q2. Its up 0.72, from 1.55 in 2016Q1. The ratio is positive, as 10 funds sold all Cempra Inc shares owned while 23 reduced positions. 14 funds bought stakes while 61 increased positions. They now own 39.80 million shares or 3.16% more from 38.58 million shares in 2016Q1.
Alpinvest Bv holds 2.21% of its portfolio in Cempra Inc (NASDAQ:CEMP) for 67,763 shares. Trexquant Inv Lp last reported 31,905 shares in the company. Wasatch Advsr last reported 0.61% of its portfolio in the stock. Rice Hall James And Assoc Ltd Llc accumulated 145,519 shares or 0.14% of the stock. The Massachusetts-based Granahan Inv Ma has invested 0.61% in Cempra Inc (NASDAQ:CEMP). Moreover, Royal Bank Of Canada has 0% invested in Cempra Inc (NASDAQ:CEMP) for 617 shares. Natl Bank Of Montreal Can holds 39,250 shares or 0% of its portfolio. Loring Wolcott & Coolidge Fiduciary Ltd Liability Partnership Ma has 460 shares for 0% of their US portfolio. Franklin Street Advsrs Nc, a North Carolina-based fund reported 54,100 shares. State Board Of Administration Of Florida Retirement System accumulated 17,953 shares or 0% of the stock. Belmont Advisors Inc, a Texas-based fund reported 15,000 shares. Landscape Cap Mgmt Limited Company holds 100,524 shares or 0.22% of its portfolio. Tiaa Cref Inv Ltd Liability has invested 0% of its portfolio in Cempra Inc (NASDAQ:CEMP). Pennsylvania Tru Communication owns 70,158 shares or 0.09% of their US portfolio. Manufacturers Life Insur Company The owns 29,074 shares or 0% of their US portfolio.

Cempra, Inc. is a clinical-stage pharmaceutical company. The company has a market cap of $1.17 billion. The Firm is focused on developing differentiated antibiotics for the acute care and community settings to meet medical needs in the treatment of bacterial infectious diseases, particularly respiratory tract infections and chronic staphylococcal infections. It currently has negative earnings. The Company’s lead product, solithromycin , is being developed in oral capsules, intravenous (IV), and suspension formulations, for the treatment of community-acquired bacterial pneumonia (CABP), as well as for the treatment of gonorrhea and other indications.

CEMP Company Profile

Cempra, Inc., incorporated on May 16, 2008, is a clinical-stage pharmaceutical company. The Firm is focused on developing differentiated antibiotics for the acute care and community settings to meet medical needs in the treatment of bacterial infectious diseases, particularly respiratory tract infections and chronic staphylococcal infections. The Company’s lead product, solithromycin (CEM-101), is being developed in oral capsules, intravenous (IV), and suspension formulations, for the treatment of community-acquired bacterial pneumonia (CABP), as well as for the treatment of gonorrhea and other indications. The Firm also focuses on developing Taksta, which is an antibiotic known as fusidic acid, and is indicated as an oral treatment of acute bacterial skin and skin structure infections (ABSSSI).

Another recent and important Cempra Inc (NASDAQ:CEMP) news was published by Finance.Yahoo.com which published an article titled: “Cempra Presents Analysis Showing Rates of Failure for Existing CABP …” on October 04, 2016.

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