Biotech firm Sorrento Therapeutics (NASDAQ:SRNE) has had a pretty tough time in the markets in the past month and the trend was apparent last week as well, as the stock tanked by another 20%. The selloff in the last week took the cumulative decline suffered by the stock in the past month to as much as 36%.
Trading Data
On Friday, SRNE stock gained 2.78% to $2.96 with more than 10.63 million shares, compared to its average volume of 6.31 million shares. The stock has moved within a range of $2.8000 – 3.0500 after opening trade at $3.02.
Recent Developments
In this context, it ought to be noted that there was no specific news about the company that may have led to the selloff last week. The wide biopharmaceutical sector had suffered last week as well and it was noticed that the selloff was in line with the sort of decline that had been seen across the sector.
As it happens, most of the stocks in the mid cap to small cap category in the biopharmaceutical sector suffered considerably and hence, it was perhaps not entirely surprising that Sorrento fell sharply as well. Hence, it may be a good idea to watch for the entire sector before hoping for a recovery in the Sorrento stock. At this point in time, a sector wide recovery or decline might have a significant impact on the Sorrento stock.
Technical Data
SRNE stock is trading below the 20-Day and 50-Day Moving averages of $4.08 and $5.14 respectively. Moreover, the stock is trading below the 200-Day moving average of $7.22.
