Sage Therapeutics Inc. (NASDAQ: SAGE) shares rose in value Wednesday Dec 14 with lower 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. equities traded mostly lower on Wednesday as investors awaited the Federal Reserve’s latest decision regarding monetary policy.
The Dow Jones industrial average traded 35 points lower, with Goldman Sachs contributing the most losses. The S&P 500 traded 0.1 percent lower, with financials leading decliners. The Nasdaq composite, meanwhile, held flat.
Analysts at Raymond James Financial Inc. upgraded shares of Sage Therapeutics Inc. (NASDAQ: SAGE) from Outperform to Strong-Buy today. With a rating of Strong-Buy on the stock, the company has a 52-week high of $62.64. A number of other analysts have spoken on the company in recent days, and the company has secured a consensus one-year price target of $74.91, above the opening price of $52.26. Usually, after analysts issue an upgrade report on a stock, they will subsequently issue sporadic revisions, often followed by a price target change.
Shares of Sage Therapeutics Inc. (NASDAQ: SAGE) opened at $52.26 on Tuesday trading between $49.11 and $52.42, and last traded at $49.90, a spike of $1.83 or 3.81% compared to the previous closing price.
Sage Therapeutics Inc. (NASDAQ: SAGE) now has a market cap of 1.85B.
Sage Therapeutics Inc. (NASDAQ: SAGE) Average Daily Trading Volume
The stock’s average daily volume is 549,128 shares out of a total float 32,760,000 and some 233,782 shares crossed the trading desk yesterday, lower than the average. Momentum traders often use swings in trading volume to determine substantial volume aggregation or dissemination by institutional investors, so trading volume is likely to increase in the next few days.
While an increase in trading for one day will not mean much, conversely, a trend of heavy trading volume on the buy side over a series of days or weeks expresses a positive cue 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.
Institutional investors such as these have teams of analysts that research thousands of stocks. So watching their interests is a good way to ensure you are buying the right stocks.
Sage Therapeutics Inc. (NASDAQ: SAGE) 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 Sage Therapeutics Inc. (NASDAQ: SAGE) have ranged from $26.28 – 62.64, and the stock now has a 50-day MA of $48.51 and 200-day MA of $41.28. Today’s last price is 20.34%% under the 52 week high of $62.64.
Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors identify companies that have increased their earnings at least 25% or more over 3 consecutive years.
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