Ocugen(OCGN) soars 10.11% on short squeeze, gene therapy optimism

Ocugen(OCGN) shares surged 10.11% today, marking the sixth consecutive day of gains, with a cumulative increase of 31.57% over the past six days. The stock price reached its highest level since January 2025, with an intraday gain of 15.66%.

The strategy of buying OCGN shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years, with a 4.56% annualized gain. However, the overall performance was slightly underwhelming, with a 5-year compound annual growth rate (CAGR) of 3.56% compared to the broader market. This suggests that while the strategy provided some stability, it may not have fully capitalized on longer-term growth opportunities in the biotech sector..

Ocugen Inc. (OCGN) has seen a significant rise in its stock price, which could be attributed to several factors. One key driver is the high short interest in the stock, estimated at 24.3% of its float. This elevated short interest suggests the potential for a short squeeze, where short sellers are forced to buy back shares to cover their positions, leading to a rapid price increase. This dynamic has likely contributed to the recent surge in Ocugen's stock price.

Additionally, investor optimism surrounding Ocugen's OCU400 gene therapy for retinitis pigmentosa has played a crucial role in the stock's performance. The potential of this innovative treatment has generated enthusiasm among investors, further fueling the stock's upward trajectory. The combination of high short interest and promising therapeutic developments has created a favorable environment for Ocugen's stock, driving its recent gains.