Catalyst Pharmaceutical Partners Inc. (NASDAQ: CPRX) shares rose in value yesterday on heavier trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Analysts at Piper Jaffray Cos. upgraded shares of Catalyst Pharmaceutical Partners Inc. (NASDAQ: CPRX) from Neutral to Overweight today. With a rating of Overweight on the shares, the company has a 52-week high of $3.55. A number of other analysts have commented on the stock recently, and the company has earned a consensus one-year price target of $3.63, above the opening price of $1.28, a difference of 24.86 percent. Stock prices often trend to the upside on recommendations and new price targets of professional analysts.
Meanwhile, the Dow Jones Industrial Average DJIA, +0.62% finished up 112.58 points, or 0.6%, at 18,281.03 yesterday.
The Nasdaq Composite Index COMP, +0.50% rose 26.36 points, or 0.5%, to end at 5,316.02, and is up 0.1% for the week to date.
The S&P 500 index SPX, +0.43% added 9.24 points, or 0.4%, to close at 2,159.73.
Shares of Catalyst Pharmaceutical Partners Inc. (NASDAQ: CPRX) opened at $1.28 yesterday trading between $1.23 and $1.58, and last traded at $1.46, an increase of $0.34 or 0.30 compared to the previous closing price.
Catalyst Pharmaceutical Partners Inc. (NASDAQ: CPRX) now has a market cap of 120.99M.
Catalyst Pharmaceutical Partners Inc.Trading Volume
17,424,519 shares traded hands yesterday, higher than the average, out of a total float 56,731,000. Substantial increases in trading volume and price appreciation together could mean considerable volume accumulation by institutional investors.
As with all possible breakouts, investors look for volume to be at least 40%-50% higher than normal on the breakout to show that fund managers and other professional investors are jumping in.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors have teams of analysts researching thousands of stocks, so it is good confirmation to see them taking a postion in a stock you’re considering.
Catalyst Pharmaceutical Partners Inc. 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 identifying trends, moving averages allow traders to make those trends work in their favor and increase the number of successful trades.
Trades for Catalyst Pharmaceutical Partners Inc. (NASDAQ: CPRX) have ranged from $0.51 – 3.55, and the stock now has a 50-day MA of $1.06 and 200-day MA of $0.88. Today’s last price is 0.59% lower than the 52 week high of $3.55.
Earnings growth is ann important factor to consider when investing in stocks and investors identify companies that have been successful at growing their earnings by at least 25% over a 3 year period.
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