Short Interest in Passage Bio, Inc. Surges 25.4% as Stock Declines

Passage Bio, Inc. (NASDAQ: PASG) experienced a significant increase in short interest in December 2023, with the total reaching 19,538 shares by December 31. This marks a notable rise of 25.4% compared to the previous total of 15,577 shares recorded on December 15. Given an average trading volume of 40,387 shares, the days-to-cover ratio is currently at 0.5 days, indicating a modest level of short-selling activity, with approximately 0.6% of the company’s shares sold short.

In related trading activity, Passage Bio’s stock fell by 9.9% on Monday, January 8, reaching a price of $12.87 per share. During the trading session, 40,317 shares exchanged hands, well below the average volume of 81,180. The company’s 50-day simple moving average stands at $10.86, while its 200-day average is at $8.51. Over the past twelve months, the stock has fluctuated between a low of $5.12 and a high of $20.00. Passage Bio currently holds a market capitalization of $40.93 million, with a price-to-earnings (PE) ratio of -0.89 and a beta of 1.76.

Financial Performance and Insider Activity

Passage Bio released its latest earnings report on November 10, 2023, revealing a loss of ($2.44) per share for the quarter. This result exceeded analyst expectations, which had forecasted a loss of ($2.64) per share, providing a slight positive surprise. Looking ahead, analysts predict that the company will report a loss of -$1.03 per share for the current year.

On January 8, 2024, CEO William Chou sold 4,076 shares of Passage Bio stock at an average price of $18.44, totaling approximately $75,161. Following this transaction, Chou’s ownership decreased by 38.45%, leaving him with 6,524 shares valued at around $120,302.56. This transaction was disclosed in a filing with the Securities and Exchange Commission, which is publicly accessible.

Institutional Investments and Company Overview

In a recent development, Squarepoint Ops LLC acquired a new stake in Passage Bio during the third quarter, as reported in their latest Form 13F filing with the Securities and Exchange Commission. The hedge fund purchased 23,500 shares, valued at roughly $188,000, representing approximately 0.74% of the company at the end of the reporting period. Institutional investors collectively own about 53.48% of the stock.

Passage Bio is a clinical-stage biotechnology company dedicated to developing gene therapies targeted at rare, monogenic central nervous system and neuromuscular disorders. The company leverages its proprietary gene therapy platform to design and engineer adeno-associated virus (AAV)-based vectors aimed at restoring or replacing defective genes. Among its lead programs is PBGM01, an AAV9-based therapy designed to treat GM2 gangliosidoses, including Tay-Sachs and Sandhoff diseases. Currently, this program is undergoing a first-in-human study to evaluate its safety and potential therapeutic benefits.

As the landscape in biotechnology continues to evolve, Passage Bio remains focused on delivering innovative treatments, while market dynamics and investor sentiments significantly influence its stock performance.