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Thursday, Nov 21, 2024

MannKind Shares Gain 41 Percent

Shares of MannKind Corp. rose more than 40 percent Thursday. The Westlake Village biotech, maker of the Afrezza brand of inhalable insulin, made no announcement about the business, but Brian Orelli on the Motley Fool website speculated that the big move stemmed from short-sellers covering their position. “The most likely reason for the massive increase today is a combination of MannKind’s share price hitting a level that investors think is too low to sell, combined with a short interest,” he wrote in a post. “The end result is a ‘short squeeze’ in which short-sellers have to buy to close their short position. Those buyers have to increase their bid price to find a seller, which results in even more short-sellers deciding to end their position.” Shares of MannKind MNKD closed Thursday up $1.11, or 41.3 percent, to $3.80 on the Nasdaq.

Joel Russel
Joel Russel
Joel Russell joined the Los Angeles Business Journal in 2006 as a reporter. He transferred to sister publication San Fernando Valley Business Journal in 2012 as managing editor. Since he assumed the position of editor in 2015, the Business Journal has been recognized four times as the best small-circulation tabloid business publication in the country by the Alliance of Area Business Publishers. Previously, he worked as senior editor at Hispanic Business magazine and editor of Business Mexico.

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