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Today, investors in Senseonics (NYSE:SENS) and SENS stock are seeing gains of approximately 12% at the time of writing. Indeed, today’s price action in this biotech play suggests investors are pricing in a relatively bullish outlook for this stock.
Such an outlook makes sense. After all, Senseonics’s core business model is focused on developing implantable continuous glucose-monitoring systems for those struggling with diabetes. Removing a key pain point (literally) for diabetes patients in having to prick their finger every few hours provides real value. Investors are betting that this technology will take off and the company will corner a rapidly growing market. Or, at least have a first-mover advantage.
Additionally, Senseonics has become a popular short-squeeze candidate among retail traders. Unsurprisingly, the company’s relatively high short interest ratio and low share price has something to do with this. Options traders are increasingly focusing on such plays as moonshot bets. As we’ve seen with previous meme-stock surges, anything’s possible.
That said, let’s look at a couple of catalysts driving SENS stock today.
SENS Stock Higher on Key Catalysts
Today, retail investors are increasingly pointing out institutional interest in SENS stock. Indeed, it appears this biotech play has made its way to the big leagues. According to institutional buying data, BlackRock, among other investors, have loaded up on SENS stock. For retail investors, this is a big vote of confidence. Accordingly, social media is blowing up today covering these reports.
Additionally, investors appear to be pricing in some sort of announcement on the horizon for Senseonics’s Eversense monitor. The company announced its submission to the Food and Drug Administration (FDA) for this continuous glucose-monitoring system in October. Retail investors appear to be factoring in some sort of movement on this front.
Currently, SENS stock remains a highly volatile bet, best suited for aggressive investors. With no shortage of such investors in today’s market, this is a stock that could go on a run. However, as we’ve seen in the past, there’s significant downside risk with this stock. Investors should trade accordingly.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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