Indaptus Therapeutics heads into its May 11 Q1 earnings with the stock in freefall, short interest at a multi-month high, and a director having just unloaded more than $10 million in shares.
The week's price action is the first thing to reckon with. INDP closed at $2.14 on Friday — a 24% single-session drop on May 1, and down 35% across the week. The one-month picture is slightly more complicated: the stock is still up 18% over the past month, meaning this week's sell-off erases most of a recent rally. A Schedule 13D/A filed on April 29 by shareholder Yao Yun adds a layer of intrigue to the ownership picture. The 8-K filings for April 22 suggest a corporate event that may have catalysed the move, though details are not yet fully public.
The most striking recent data point is an insider sell. Director David Lazar recorded two sell transactions on March 23: one for roughly $405,000 at $2.06, and a second for $10.8 million at $15.42 per share. That second transaction at $15.42 stands well above the current price and likely reflects a warrant exercise or different instrument class — the raw data is difficult to reconcile with the stock's current trading range and should be treated cautiously. What is clear is that net insider activity over the past 90 days amounts to a reported $11.2 million in outflows at the director level. The CEO, Jeffrey Meckler — who holds 10.25% of shares — received a share award in December and has made open-market purchases in prior years, but has not filed a recent open-market buy.
Short interest, while not extreme in absolute terms, has been building sharply. SI reached 3.4% of the free float as of April 30 — not a crowded short in isolation, but the trajectory is notable: that reading is up 15% week-on-week and up nearly 370% over the past month. The sharp rise in April from roughly 14,000 shares short in early March to over 59,000 shares now tells a story of accelerating positioning against the name. The cost to borrow is elevated at 80%, up 13% on the week. Availability remains moderate — borrow supply has not dried up — but the 52-week utilisation high of 100% means the lending market has been much tighter before, and at the current pace of positioning, borrowers may find it harder to add. The ORTEX short score of 65.1 places this firmly in the upper tier of short-interest pressure.
The stock is a micro-cap — a market cap below $7 million as of the screening data — with no active analyst coverage in the current period. The sole stale price target on record, $10.00, was last updated in November 2025 and is not reliable guidance at today's price. The analyst return potential field shows 367%, which arithmetically reflects that stale target against the current $2.14 price, not fresh conviction from the Street. Ownership is concentrated: the top three holders — Thomas Mollick, Jeffrey Meckler, and Matthew Nachtrab — collectively control over 31% of shares, with Mollick and Nachtrab having added materially in the January reporting period. That tight float amplifies both upside and downside volatility.
Prior earnings reactions are mixed but lean negative. The November 2025 print produced a 13% drop on the day and a further 39% over the following week — a severe five-day reaction. The March 2026 earnings call, however, saw the stock gain 7% on the day. With the next Q1 release scheduled for May 11, the setup is a stock already bruised by a 35% weekly decline, a short base that has grown sixfold over six weeks, and a director sale of unusual size in the rearview mirror. What drives the print's reception — clinical update, cash runway disclosure, or shareholder structure news — is the question to track between now and mid-May.
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