ACADIA Pharmaceuticals Inc. (NASDAQ: ACAD) shares rose on Tuesday February 7 on lower trade volume than normal after a number of analysts weighed in on the investing value of the stock and reiterated thier respective ratings.
U.S. stocks were up in early trade on Tuesday which could put the equity market on track to set new records.
Investors were focusing on earnings, with GM and Michael Kors making moves after reporting early.
S&P 500 futures ESH7, +0.31% rose 7 points, or 0.3%, to 2,293.50, while Dow Jones Industrial Average futures YMH7, +0.46% tacked on 70 points, or 0.4%, to 20,042. Nasdaq-100 futures NQH7, +0.48% added 14 points, or 0.3%, to 5,171.75.
Piper Jaffray Companies analysts reiterated its Overweight rating on ACADIA Pharmaceuticals Inc. (NASDAQ: ACAD) in a note to investors, making it one of the more closely watched stocks on Wall Street. With a rating of Overweight on the shares, the company has a 52-week high of $42.49. A number of other analysts have issued reports on the company in recent days, and the company has earned a consensus one-year price target of $42.25, above the opening price of $37.97. Share prices sometimes get a spike to the upside when analysts reiterate coverage.
Shares of ACADIA Pharmaceuticals Inc. (NASDAQ: ACAD) opened at $37.97 yesterday trading between $37.65 and $38.31, and last traded at $38.25, a spike of $0.40 over the previous closing price.
ACADIA Pharmaceuticals Inc. (NASDAQ: ACAD) currently has a market cap of 4.63B.
ACADIA Pharmaceuticals Inc. (NASDAQ: ACAD) Average Daily Trading Volume
The stock’s average daily volume is 2,591,980 shares out of a total float 94,902,000 and some 240,763 shares traded hands yesterday, 52 percent below normal. lower than normal. Look for trading volume to pick up in the coming days as swing traders often use upticks in trading volume to identify heavy volume accumulation or distribution by institutional investors.
However, a single day of heavy buy side trading is not enough to assert a trend. As such, market traders will continue to watch for institutional sponsorship as a signal that financial institutions are moving forward.
Institutional sponsorship simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these retain substantial teams of analysts that research thousands of stocks, so it is good confirmation to see them buying a stock you’re researching.
ACADIA Pharmaceuticals Inc. (NASDAQ: ACAD) Moving Averages
A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.
This is because the average acts like a floor (support), so the price bounces up off of it.
In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.
By tracking the activity of these professional investors—and the moving averages they affect—it allows for traders to make more effective decisions on trades.
Trades for ACADIA Pharmaceuticals Inc. (NASDAQ: ACAD) have ranged from $16.64 – 42.49, and the stock now has a 50-day MA of $31.18 and 200-day MA of $30.21. Today’s last price is 9.98%% below the 52 week high of $42.49.
Earnings growth is a crucial factor to research when buying stocks and investors identify companies that have increased their earnings at least 25% or more for a 3 year period.
DISCLOSURE: The views and opinions expressed in this article do not represent the views of the website. Readers should not consider statements made by the author as formal recommendations and should consult their financial adviser before making any investment decisions. To read our full disclosure, please see our terms and conditions page.