Zogenix, Inc. (NASDAQ: ZGNX) shares rose on Tuesday February 14 on lighter trade volume than normal after more analysts initiated coverage on the stock.
Meanwhile U.S. stocks opened slightly lower on Tuesday. The main three benchmarks retreated after touching the latest in a series of record highs on Monday, with the S&P 500 index SPX, -0.09% down two points, or 0.1%, to 2,326.
The Dow Jones Industrial Average DJIA, -0.02% fell 34 points, or 0.2%, to 20,381. The Nasdaq Composite Index COMP, -0.13% shed eight points, or 0.1%, to 5,756.
Analysts at Aegis initiated coverage on Zogenix, Inc. (NASDAQ: ZGNX) stock, starting the company at Buy. Aegis currently has a rating of Buy on the stock. As a means of comparison, a number of other analysts have commented on the company recently, and Zogenix, Inc. has secured a consensus one-year price target of $19.80, higher than the opening price of $9.45. Zogenix, Inc. stock has a 52-week high of $13.70. Changes in price targets are not uncommon as analysts and brokerage firms will re periodic updates after beginning or initiating coverage.
Shares of Zogenix, Inc. (NASDAQ: ZGNX) opened at $9.45 yesterday trading between $9.43 and $9.65, and last traded at $9.65, which represents a jump of $0.10 over the previous closing price.
Zogenix, Inc. (NASDAQ: ZGNX) now has a market cap of 239.22M.
Zogenix, Inc. (NASDAQ: ZGNX) Average Daily Trading Volume
The stock’s average daily volume is 275,553 shares out of a total float 17,645,000 and some 28,725 shares traded hands yesterday, 66 percent lower than the average. lower than normal. Look for trading volume to pick up in the coming days as investors often use upticks in trading volume to identify heavy volume accumulation or distribution by institutional investors.
However, a single day of heavy buy side trading is not enough to assert a trend. As such, market traders will continue to watch for institutional sponsorship as a signal that financial institutions are moving forward.
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 that research thousands of stocks, so it is good validation to see them taking a postion in a stock you are considering.
Zogenix, Inc. (NASDAQ: ZGNX) 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 successful trades.
With that in mind, Zogenix, Inc. (NASDAQ: ZGNX) now has a 50-day MA of $10.16 and 200-day MA of $10.24. It has traded in a 52-week range between $7.33 – 13.70 and today’s last price is 29.56%% lower than the 52 week high of $13.70.
Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors watch for companies that have grown their earnings at least 25% or more over 3 consecutive years.
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