Vanda Pharmaceuticals Ended Up Over 8%, and Here’s What You Need Know

Vanda Pharmaceuticals Inc (NASDAQ: VNDA) shares were up over 8% today, after an investment company filed an SEC Schedule 13G. Additionally, there were other insiders who filed SEC Form 4s. That in mind, you’ll want to check out these positions and its technical pattern to get an idea why some traders might be bearish and bullish on the name.

Armistice Capital Increases Passive Stake in Vanda Pharmaceuticals

Armistice Capital LLC, which is located in New York, filed an SEC Form 13G and disclosed its increased passive stake in Vanda Pharmaceuticals. The SEC Schedule 13G was filed on June 19, 2017, which may have been one of the reasons why shares were up over 5% on the day. That said Armistice Capital LLC increased its passive stake to over 5%, and the investment company currently owns 2.292M shares, and those shares have a shared voting power, rather than sole voting power.

Moreover, multiple directors filed SEC Form 4s on June 19, 2017. Thomas Watkins who is a director filed an SEC Form 4, and it noted that Watkins acquired 5K shares on June 15, 2017. Additionally, Vincent Milano, another director, acquired 5K shares of its common stock, and 10K stock options with an exercise price of $13.75. Moreover, Richard W. Dugan acquired 5K shares, as well as Michael F. Cola, who also acquired 5K shares. Not only that, but Kenneth Bate also acquired 5K shares of Vanda Pharmaceuticals. That in mind, this would be considered bullish activity by many investors. However, keep in mind that the price of the shares of these were “zero cost,” and may have been distributed to directors for free.

What You Need to Know About Vanda Pharmaceuticals

  • Multiple directors and Armistice Capital LLC purchased shares of VNDA, not too long ago.
  • Vanda Pharmaceuticals shares were up over 8% on the day. Vanda Pharmaceuticals shares were down over 2% over the past three months and over 11% year to date. However, the stock has been up nearly 30% over the past one-year period.
  • Vanda Pharmaceuticals has a negative earnings per share (EPS), and consequently, the stock’s price-to-earnings ratio (P/E) that is immeasurable. However, the biotech industry average was 65.8.
  • VNDA had a price-to-book ratio (P/B) 4.9 and a trailing 12-month price-to-sales ratio of 4.1, while the industry average was 6.2 and 6.3, respectively.
  • As of May 31, 2017, Vanda had 44.55M shares outstanding and 43.59M shares floating. Additionally, it had shares short of 2.51M and a short interest of 5.76%.

Check out Vanda Pharmaceuticals on the daily chart below.


Source: TradingView

The Bottom Line

Shares of Vanda were up over 8% today, after multiple directors filed SEC Form 4s, noting that they acquired shares of VNDA, which should be considered bullish activity. Therefore, this is one reason why some traders may want to be long. Additionally, Armistice Capital LLC increased its stake to 5.1%, another reason why some traders are bullish on the name.

On the other hand, some traders may be bearish on the name due to its technical pattern. If your refer to the chart shown previously, you’ll notice the stock rose above its upper Bollinger Band, which is an indication that the stock could mean revert and pull back. That in mind, although Armistice Capital LLC increased its stake and directors acquired some shares, there are still reasons why some may want to be long or short the stock.


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