Galmed Pharmaceuticals Ltd. (NASDAQ: GLMD) shares rose in value yesterday on lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Analysts at Zacks Investment Research upgraded shares of Galmed Pharmaceuticals Ltd. (NASDAQ: GLMD) from Hold to Buy today. With a rating of Buy on the shares, Galmed Pharmaceuticals Ltd. has a 52-week high of $10.20. A number of other analysts have commented on the stock in recent days, and Galmed Pharmaceuticals Ltd. has earned a consensus one-year price target of $13.40, above the opening price of $4.53. 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 Galmed Pharmaceuticals Ltd. (NASDAQ: GLMD) opened at $4.53 yesterday and traded in a range between, $4.35 and $4.74, and last traded at $4.62, which is a spike of $0.11 or 0.02 from the previous closing price.
Galmed Pharmaceuticals Ltd. (NASDAQ: GLMD) currently has a market cap of 51.29M.
Galmed Pharmaceuticals Ltd.Trading Volume
The stock’s average daily volume is 85,266 shares out of a total float 5,661,000 and some 69,090 shares crossed the trading desk yesterday, below normal. Momentum traders often use upticks in trading volume to determine substantial volume growth or distribution by institutional investors, so trading volume is likely to increase in the next few days.
As with all potential breakouts, investors watch for volume to be at least 40%-50% above normal on the breakout to demonstrate that fund managers and other professional investors are jumping in.
Institutional sponsorship commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these have teams of analysts researching thousands of stocks. Thus, watching their interests is a good way to ensure you are buying the right stocks.
Galmed Pharmaceuticals Ltd. 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.
Traders are able to make make educated trades when they follow the activity of professional investors.
Trades for Galmed Pharmaceuticals Ltd. (NASDAQ: GLMD) have ranged from $3.50 – 10.20, and the stock now has a 50-day MA of $4.18 and 200-day MA of $4.71. Today’s last price is 0.55% under the 52 week high of $10.20.
Earnings growth is a crucial factor to consider when buying stocks and investors seek companies that have increased their earnings at least 25% or more over the past 3 years.
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