Shares of the beaten-down biotech Allakos (NASDAQ: ALLK) are showing signs of life today. Specifically, the clinical-stage immunomodulatory receptor specialist's stock price was up by a healthy 24.7%, on heavy volume, as of 1:15 p.m. ET Wednesday afternoon. 

What's powering the biotech's stock higher today? Interestingly enough, Allakos hasn't released any material news since its 2022 second-quarter earnings report nearly a full month ago. Investors, in turn, seem to simply be getting into position ahead of a key upcoming catalyst due out next month. 

This bullish trend is also probably causing some short-sellers to rethink their position today. As a result, short covering may be a contributing factor to this double-digit move northward. After all, Allakos stock has been a prime short-seller target ever since the biotech's late-stage monoclonal antibody lirentelimab missed the goalpost as a treatment for eosinophilic gastrointestinal diseases late last year. 

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Source Fool.com