Seattle Genetics Inc. (NASDAQ: SGEN) shares were down on Tuesday Dec 6 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock, increasing the price target of stock.
Meanwhile, U.S. stocks looked for direction on Tuesday with the Dow industrials trying for a fresh record a day after closing at an all-time high in the previous session.
The Dow Jones Industrial Average DJIA, -0.08% opened little-changed at 19,221, the S&P 500 index SPX, -0.01% climbed 2 points, or 0.1%, at 2,206, while the Nasdaq Composite Index COMP, +0.20%
Seattle Genetics Inc. (NASDAQ: SGEN) had its price target increased by equities researchers at RBC Capital Markets from $62.00 to $72.00. With a rating of Outperform on the shares, the company has a 52-week high of $75.36. The one-year price target of $54.57 is less than the opening price of $66.71, that has caused a number of other analysts to report on the company in recent days.
Seattle Genetics Inc. (NASDAQ: SGEN) shares last traded at $66.02, which represents a dip of $0.24 per share or -0.36% compared to the previous closing price. Opening at $66.71, they varied from $65.21 and $67.33 throughout the day.
Seattle Genetics Inc. (NASDAQ: SGEN) currently has a market cap of 9.35B.
Seattle Genetics Inc. (NASDAQ: SGEN) Average Daily Trading Volume
52,300 shares crossed the trading desk yesterday, lower than normal, out of a total float 94,472,000. Trading volume is likely to increase in the next few days as investors often use upticks in trading volume to pinpoint heavy volume accumulation or circulation by institutional investors.
While increased trading for short periods will not mean much, however, a trend of heavy trading volume on the buy side over a series of days or weeks expresses a positive signal to market traders that institutions may be moving in, so institutional sponsorship is crucial.
Institutional sponsorship simply 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 it is good confirmation to see them buying a stock you’re researching.
Seattle Genetics Inc. (NASDAQ: SGEN) 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 investors to make those trends work in their favor and increase the number of successful trades.
With that in mind, Seattle Genetics Inc. (NASDAQ: SGEN) now has a 50-day MA of $61.32 and 200-day MA of $49.88. It has traded in a 52-week range between $26.02 – 75.36 and today’s last price is 12.39%% lower than the 52 week high of $75.36.
Earnings growth is a crucial factor to look at when buying stocks and investors watch for companies that have increased their earnings at least 25% or more over 3 consecutive years.
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