Viking Therapeutics has rallied 17% in a week while nearly 20% of its float remains short — a setup where an unmoved short base meets visibly bullish options positioning.
The stock closed at $34.81 on Tuesday, up 7.5% on the day alone and 12.7% higher over the past month. That move has not shaken the shorts. Short interest is essentially flat on the week, nudging up just 0.7% to 20% of free float — roughly 22.6 million shares held short. The borrow market offers no squeeze pressure to explain the rally. Availability is loose at 203%, meaning there are roughly two shares available to borrow for every one already out on loan. Cost to borrow remains near rock-bottom at 0.44%, down from a brief spike near 1% at the end of May. The shorts are staying put, but conditions make it cheap and easy for them to do so.
Options traders are reading the tape differently. The put/call ratio has dropped to 0.198, well below its 20-day average of 0.215 and tracking near its 52-week low of 0.164. That is 1.45 standard deviations below the recent mean — unusually call-heavy for this name. The 52-week high on the PCR was 0.543, so the current reading represents a stark shift in tone. Traders are not buying downside protection; they are piling into calls. The divergence between a stubborn short base and aggressively bullish options flow is the defining tension of the week.
The Street is broadly constructive but has not moved fast enough to catch the stock. The analyst consensus is a firm buy, with 13 buy ratings and a mean price target of $92.58 — implying roughly 166% upside from current levels. The most recent action came from Lake Street in late May, initiating coverage with a Buy and an $89 target. BTIG has held its Buy rating and $125 target since late April. Cantor Fitzgerald trimmed its target modestly to $100 after Q1 results, but maintained Overweight. The bull case rests on VK2735's competitive profile as a GLP-1/GIP dual agonist — both oral and subcutaneous formats — and a cash position large enough to fund the pipeline without near-term dilution risk. Bears point to the pre-revenue reality: high R&D burn, no marketed product, and a crowded obesity drug market where Novo Nordisk and Eli Lilly have enormous head starts. The ORTEX short score sits at 74.6, placing VKTX firmly in the higher-risk zone on that measure, while the analyst recommendation factor scores in the 98th percentile — an unusual combination of Street enthusiasm and short-side skepticism.
Institutional ownership underscores the bifurcated view. BlackRock recently added to its position, reporting 6.9 million shares as of May 31. Two Sigma built a 4.4-million-share stake in Q1. American Century added 1.8 million shares in the same period. On the other side, Citadel trimmed by 470,000 shares. Founder and CEO Brian Lian sold approximately $5.9 million worth of stock in early January — at prices very close to where the stock trades today, which will register as background noise rather than a directional signal. That insider data is now over 100 days old and should not be over-read.
The next earnings event is scheduled for July 22. The two most recent prints produced a 2.6% gain and a 3.7% loss on the day respectively, with limited five-day follow-through in either direction. The setup into that date — shorts unmoved, options bullish, borrow loose, and a stock that has just run 17% in a week — is what to watch as the calendar closes in on that readout.
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