Markets

Why Akebia Therapeutics Stock Is Jumping Today

What happened

Shares of Akebia Therapeutics (NASDAQ: AKBA) were jumping 10.3% higher as of 11:28 a.m. EST on Friday after rising as much as 18.2% earlier in the morning. The biotech didn't announce any new developments. However, it appears that investors are continuing to buy up shares after two key events: regulatory filings last week revealed that key insiders were buying more of the stock, and on Nov. 9, the company announced positive results after 52 weeks for its lead candidate vadadustat in two late-stage studies conducted in Japan.

So what

Sustained momentum that continues for days and weeks after big news for a small biotech stock sometimes is a sign that institutional investors are scooping up shares. These big investors typically don't build their positions all at once but instead buy relatively smaller positions over a period of time.

Businessman pointing to a chart line sloping upward.

Image source: Getty Images.

There's no way to know for sure at this point if that's what is happening with Akebia. However, it wouldn't be surprising if that's the case. The company's positive results from the Japanese studies of vadadustat in treating anemia due to chronic kidney disease (CKD) have heightened expectations for good results from U.S. late-stage studies of the drug.

Now what

Investors now must wait to see how Akebia's lead candidate fares in those U.S. studies. The company expects to report results from one study in the second quarter of 2020 and another in the middle of next year.

10 stocks we like better than Akebia Therapeutics
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has quadrupled the market.*

David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Akebia Therapeutics wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks

 

*Stock Advisor returns as of June 1, 2019

 

Keith Speights has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

AKBA

Latest Markets Videos

The Motley Fool

Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Learn More