Which Way is The Street Betting Intercept Pharmaceuticals, Inc. (NASDAQ:ICPT) Will Go? Short Interest in the Viewfinder

Based on the latest information, investors are looking at Intercept Pharmaceuticals, Inc. (NASDAQ:ICPT)’s short data and trying to figure out market sentiment on which way the market thinks the stock is moving. The firm has 13.49% of total shares float short, yielding a short ratio of 6.56.

Every individual investor strives to make the best possible stock investment decisions. New investors may have a limited knowledge of how the stock market functions. Studying the basics and accumulating as much knowledge as possible can help the investor create a cornerstone for future success. Everybody has to start somewhere, but continually adding to the market education pool might help the investor see something that they might not have noticed before. Taking a view of the stock market from various angles can help build a more robust databank from which to work from. Because market environments are always shifting, investors may need to do a little extra homework in order to stay ahead of the curve.

When investors engage in short selling or “shorting a stock”, they actually borrow shares from an existing owner, sell the borrowed shares at market price, and take the cash.  The short sellers then promise to replace the stock in the future and makes dividend payments out of their own pockets to cover the dividend income that is no longer exists on the original, now borrowed and sold, shares.

They hope that the stock price will fall or that the company will fail and go bankrupt, leading the equity holders to ruin.  The short sellers will then buy the stock back at a much lower price and replace the borrowed shares, pocketing the difference. 

Shorting a stock can be very risky if the price doesn’t decline like planned and, in fact, increases.  It’s important for any investor to understand the dangers and potentially catastrophic financial losses of short selling.

RECENT PERFORMANCE AND RECOMMENDATION

Let’s take a look at how the stock has been performing recently.  Over the past twelve months, Intercept Pharmaceuticals, Inc. (NASDAQ:ICPT)’s stock was 8.87%.  Over the last week of the month, it was 7.21%, 7.49% over the last quarter, and  13.44% for the past six months. 

Over the past 50 days, Intercept Pharmaceuticals, Inc. stock’s -4.87% off of the high and 30.14% removed from the low.  Their 52-Week High and Low are noted here.  -17.95% away from the high and 114.95% from the low. 

The consensus analysts recommendation at this point stands at 2.30 on Intercept Pharmaceuticals, Inc. (NASDAQ:ICPT).  This is based on a 1-5 scale where 1 indicates a Strong Buy and 5 a Strong Sell. The same analysts are predicting that the company shares will trade to $138.84 within the next 12-18 months. 

Investing in the stock market comes with inherent risk. Some stocks are much riskier than others, but there will always be some level of risk no matter which stocks are chosen. Individual investors managing their own portfolios are constantly on the lookout for investing tips or some kind of information that may confirm their gut feeling about a certain stock. Investors may want to be wary when listening to stock investment advice from friends, family members, or even trusted colleagues. People are usually quick to tell others about the winning stocks that they have picked in the past, but they may not be very forthcoming about discussing those portfolio clunkers. After hearing about the next big stock, investors can always do the research and check the prospect out for themselves.

Disclaimer: The views, opinions, and information expressed in this article are those of the authors and do not necessarily reflect the official policy or position of any company stakeholders, financial professionals, or analysts. Examples of analysis performed within this article are only examples. They should not be utilized to make stock portfolio or financial decisions as they are based only on limited and open source information. Assumptions made within the analysis are not reflective of the position of any analysts or financial professionals.