Analysts at FBR & Co initiated coverage on Arena Pharmaceuticals Inc. (NASDAQ: ARNA) stock, starting the company at Outperform. As a means of comparison, a number of other analysts have commented on the company recently, and the company has secured a consensus one-year price target of $3.75, $1.59. Arena Pharmaceuticals Inc.stock has a 52-week high of $2.95.After beginning or initiating coverage, analysts and brokerage firms will subsequently issue periodic updates. Changes in price targets are not unusual.
U.S. stocks finished higher Thursday, near their intra-day highs.
The Dow Jones Industrial Average DJIA, +0.99% closed up 177.71 points, or 1%, at 18,212.48, led by a 3.4% surge in shares of Apple Inc. AAPL, +3.40%
All 30 of the Dow components finished in the green.
The S&P 500 index SPX, +1.01% wrapped up 21.49 points, or 1%, to 2,147.26, and all the large-cap gauge’s sectors ended higher, topped by a 1.7% rise in the tech sector and a 1.1% gain in health-care shares
The Nasdaq Composite Index COMP, +0.36% advanced 18.52 points, or 0.4%, to close at 5,173.77.
Stock prices often move to the upside on recommendations and new price targets of professional brokerage firms.
Shares of Arena Pharmaceuticals Inc. (NASDAQ: ARNA) opened at $1.59 today and traded in a range between, $1.55 and $1.74, and last traded at $1.74, which represents a change of $ 0.20 over the previous closing price.
Arena Pharmaceuticals Inc. (NASDAQ: ARNA) now has a market cap of 423.27M
The stocks average daily volume is 1,556,310 shares out of a total float 215,305,000 of and some 7,678,857 shares crossed the trading desk yesterday, 3 percent higher than normal. Significant increases in trading volume and price appreciation together could signal heavy volume accumulation by institutional investors.
While increased trading for short periods will not mean much will not mean much, however, a trend of heavy trading volume on the buy side over a period of days or weeks sends a positive signal to market traders that institutions may be moving in, so institutional sponsorship is very important.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Professional investors such as these retain substantial teams of analysts that research thousands of stocks. Thus, watching their interests is a good way to ensure you are buying the right stocks.
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.
With that in mind Arena Pharmaceuticals Inc. (NASDAQ: ARNA) now has a 50-day MA is $1.63 and 200-day MA is $1.71, and it has traded in a 52-week range between $1.30 – 2.95 and today’s last price is -41.02 percent off the 52 week high.
Indeed, earnings growth is among the most important things to look in regards to stock investing and, accordingly, investors seek companies who have been successful at growing their earnings by at least 25 percent over a 3 year period.
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