A Short Squeeze Could Send This Little-Known Biotech Stock Soaring

• Spyre Therapeutics (SYRE) has strong technical momentum and is trading at a new 52 week high.
• SYRE maintains a 100% “Buy” opinion from Barchart.
• Shares are up more than 50% in the past month.
• High short interest at 24% of the float is reason for caution, yet a potential short squeeze could drive further upside.

Today’s Featured Stock

Valued at $2.6 billion, Spyre Therapeutics (SYRE) is a biotechnology company aiming to create inflammatory bowel disease products by combining antibody engineering, rational therapeutic combinations, and precision medicine approaches for patient selection.  

What I’m Watching

I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals; superior current momentum in both strength and direction; and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. SYRE checks those boxes. Since the Trend Seeker signaled a new “Buy” on Oct. 8, the stock has gained 93.61%.

Barchart Technical Indicators for Spyre Therapeutics

Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.

Spyre Therapeutics hit a 52-week high of $34.54 on Dec. 4.

• SYRE has a Weighted Alpha of +103.63.
• Spyre Therapeutics has a 100% “Buy” opinion from Barchart.
• The stock gained 26.4% over the past year.
• SYRE has its Trend Seeker “Buy” signal intact.
• The stock recently traded at $34.36 with a 50-day moving average of $23.44.
• Spyre Therapeutics made 14 new highs and gained 52% in the last month.
• Relative Strength Index (RSI) is at 78.97.
• There’s a technical support level around $32.95.

Don’t Forget the Fundamentals

• $2.6 billion market capitalization.
• Wall Street has begun to follow this stock and although most of the upgrades have been recent, analysts have not stuck their necks out to give revenue and earnings predictions.

Analyst and Investor Sentiment on Spyre Therapeutics

It looks like Wall Street has discovered this stock, but individual investors are split on it, and short interest is high.

• The Wall Street analysts tracked by Barchart have given 14 “Strong Buys” and 1 “Hold” opinion on the stock with price targets between $21 and $70.
• Value Line rates it “Average.”
• CFRA’s MarketScope Advisor rates it a “Hold.”
• Morningstar thinks even with the stock’s recent runup, it’s undervalued with a fair value of $43.25.
• 46 investors following the stock on Motley Fool think the stock will beat the market while 45 think it won't.
• 2,480 investors are monitoring the stock on Seeking Alpha which rates it a “Hold.”
• Short interest is high at 24% of the float.

The Bottom Line on Spyre Therapeutics

It’s a positive sign that Wall Street is giving the stock good opinions, but I’m always cautious when I see high short interest growing too. If the shorts keep growing, that’s resistance, but if the price breaks through that resistance, the shorts will have to cover fast.

Today’s Chart of the Day was written by Jim Van Meerten. Read previous editions of the daily newsletter here.

Additional disclosure: The Barchart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.