So it would stand to reason that should some unexpectedly good news come out, and short sellers did not have 6 days of patience but instead wanted to cover their short positions very suddenly, that situation could result in sending the stock higher until the higher price produces enough sellers to generate the necessary volume to close out those positions quickly.
AVEO Pharmaceuticals, Inc. (AVEO) has something relatively rare for a stock with this much short interest, that being insiders taking the other side of the trade. Looking back over the trailing six month period, AVEO has seen 2 different instances of insider buying, as summarized by the table below:
|02/19/2013||Robert C. Young||Director||990||$6.60||$6,533.01|
|03/07/2013||Henri A. Termeer||Director||55,499||$6.73||$373,735.82|
Below is a chart showing the "days to cover" for AVEO over time:And looking at the chart below, AVEO's low point in its 52 week range is $2.23 per share, with $14.08 as the 52 week high point — that compares with a last trade of $2.51.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts