Blockchain Stock Jumps on SEC Insider Trading Accusations

It's a volatile trading day on Wall Street

Trade war fears have resurfaced, sending the major U.S. benchmarks spiraling into the red for the week. Among individual stocks making big moves today are drugmakers Incyte Corporation (NASDAQ:INCY) and NewLink Genetics Corp (NASDAQ:NLNK), as well as blockchain technology firm Longfin Corp (NASDAQ:LFIN). Here's a quick roundup of what's moving shares of INCY, NLNK, and LFIN.

Halted Drug Study Sends Incyte Stock to New Lows

Incyte stock has plunged 21% to trade at $65.50 -- earlier hitting a two-year low of $63.81 -- after the company ended the study of its cancer drug, epacadostat, used in combination with Merck's (MRK) Keytruda, after an external agency found late-stage results failed to meet the main goal of delaying progression in patients with metastatic melanoma. A round of bearish brokerage notes is only adding additional pressure, with William Blair and Guggenheim downgrading INCY to the equivalent of a "neutral," with the latter joining no fewer than three other analysts in slashing their price targets on the stock.

While the shares are pacing for their worst week since August 2012 -- down 19.7% so far -- this negative price action is nothing new. The stock has been charting a path steadily lower over the last 12 months, and is now off 51% year-over-year. More negative analyst attention could come down the pike, too, considering the majority of brokerages still maintain a "buy" rating on INCY stock, with not a single "sell" on the books. Plus, the average 12-month price target sits all the way up at $121.65.

NewLink Genetics Shares Get Hit By Incyte Headwinds

NewLink Genetics stock is sinking on sector headwinds, especially considering the biotech's drug indoximod -- currently being tested in a clinical collaboration with AstraZeneca (AZN) -- was a lead competitor to epacadostat. NLNK shares are down 45.4% to trade at $4.00, not far from the record low of $3.95 they tagged earlier. The stock was also downgraded at SunTrust Robinson to "hold" from "buy," with the brokerage firm also cutting its price target to $5 from $19.

The security has shed more than half its value year-to-date, and short sellers are sitting pretty. Though NLNK is on the short-sale restricted list today, 5.48 million shares are currently sold short -- accounting for more than 19% of the stock's available float.

Longfin Call Options Pop With Stock

After being halted earlier, Longfin stock was last seen up 47.3% to trade at $28.19. The U.S. Securities and Exchange Commission (SEC) froze $27 million in profits from insider stock sales involving cryptocurrency firm's CEO Venkat Meenavalli and three other individuals. This just caps a volatile week for LFIN shares, which have made double-digit percentage moves each day -- though on a net basis, they're on track for a 63% weekly gain.

Longfin options traders have been active, too, with single-session trading volume topping out at a record high of 56,332 contracts yesterday. Today, more than 15,000 contracts are on the tape, with buy-to-open activity detected at the April 20 call. The volume-weighted average price (VWAP) for the calls is $7.98, making breakeven for the call buyers $27.98 (strike plus VWAP).