Merus NV (NASDAQ: MRUS) shares slid back in value Thursday Dec 22 with heavier trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile, U.S. stocks opened mostly flat on Thursday. The Dow Jones Industrial Average DJIA, -0.15% fell 15 points to 19,928, a drop of less than 0.1%. The S&P 500 SPX, -0.22% fell 1 point, or 0.05%, to 2,264. The Nasdaq Composite Index COMP, -0.23% fell 1 point to 5,470.21, essentially unchanged on the day.
Analysts at Citigroup Inc. upgraded shares of Merus NV (NASDAQ: MRUS) from Neutral to Buy today. The company currently has a rating of Buy on the stock. The one-year price target of $18.30 is lower than the opening price of $21.23, causing a fair amount of other analysts to issue statements on the stock recently. Looking back over the last 52 weeks, Merus NV stock has a high of $22.18. Usually, after analysts publish an upgrade report on a stock, they will subsequently issue periodic revisions, such as a price target change.
Shares of Merus NV (NASDAQ: MRUS) opened at $21.23 on Tuesday trading between $19.81 and $21.28, and last traded at $20.07, a dip of $0.15 per share or -0.74% over the previous closing price.
Merus NV (NASDAQ: MRUS) now has a market cap of 322.70M.
Merus NV (NASDAQ: MRUS) Average Daily Trading Volume
The stock’s average daily volume is 18,844 shares out of a total float 3,422,000 and some 29,369 shares traded hands yesterday, higher than the average. Considerable volume accumulation by institutional investors may be on the horizon as the combination of large increases in trading volume and price appreciation can be determining components.
While higher trading for one day will not mean much, conversely, a trend of heavy trading volume on the buy side over a period of days or weeks expresses a positive signal to market traders that institutions may be moving in, so institutional sponsorship is crucial.
Institutional sponsorship commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors retain substantial teams of analysts that research thousands of stocks. So watching their interests is a good way to make sure you are buying the right stocks.
Merus NV (NASDAQ: MRUS) 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 spotting trends, moving averages allow investors to make those trends work in their favor and increase the number of winning trades.
Trades for Merus NV (NASDAQ: MRUS) have ranged from $7.25 – 22.1850, and the stock now has a 50-day MA of $15.81 and 200-day MA of $12.25. Today’s last price is 9.53%% below the 52 week high of $22.18.
Earnings growth is a critical factor to consider when buying stocks and investors seek companies that have grown their earnings at least 25% or more over the past 3 years.
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