Amarin Corp. PLC (NASDAQ: AMRN) shares rose on in early trade Wednesday with lighter trade volume than normal after more analysts initiated coverage on the stock.
Analysts at Citigroup Inc. initiated coverage on Amarin Corp. PLC (NASDAQ: AMRN) stock, rating the company at Buy. Citigroup Inc. currently has a rating of Buy on the stock. As a means of comparison, a number of other analysts have issued reports on the stock in recent days, and the company has earned a consensus one-year price target of $6.63, above the opening price of $3.09, a difference of 21.95 percent. Amarin Corp. PLC stock has a 52-week high of $3.46. Analysts and brokerage firms will subsequently issue periodic updates after initiating coverage,. Price changes targets are not unheard of.
U.S. stocks mostly climbed on Wednesday as crude-oil prices traded above $51 a barrel.
The Dow Jones Industrial Average DJIA, +0.18% gained 33 points, or 0.2% at 18,195, the S&P 500 index SPX, +0.07% advanced 2 points, or less than 0.1%, at 2,141, while the Nasdaq Composite Index COMP, -0.08% traded little-changed at 5,240.
U.S. stocks closed higher Tuesday as investors welcomed stronger-than-expected quarterly results from a host of companies
The S&P 500 index SPX, +0.62% finished up 13.10 points, or 0.6%, at 2,139.60, with all 11 main sectors trading higher.
The Dow Jones Industrial Average DJIA, +0.42% rose 75.54 points, or 0.4%, to close at 18,161.94.
Meanwhile, the Nasdaq Composite Index COMP, +0.85% added 44.01 points, or 0.9%, to close at 5,243.84.
Amarin Corp. PLC (NASDAQ: AMRN) shares last traded at $3.02, a jump of $0.02 or 0.72% compared to the previous closing price. Opening at $3.09, they ranged from $3.02 and $3.11 throughout the day.
Amarin Corp. PLC (NASDAQ: AMRN) now has a market cap of 557.64M.
Amarin Corp. PLCTrading Volume
1,035,795 shares crossed the trading desk yesterday, below the average, out of a total float 182,462,000. Swing traders often use swings in trading volume to determine substantial volume accumulation or circulation by institutional investors, so look for trading volume to pick up in the coming days.
As with all possible 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 simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these have substantial teams of analysts that research thousands of stocks. Thus, watching their interests is a good way to make sure you are buying the right stocks.
Amarin Corp. PLC 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 following the activity of these professional investors—and the moving averages they affect— traders are able to make make educated trades.
Trades for Amarin Corp. PLC (NASDAQ: AMRN) have ranged from $1.24 – 3.4600, and the stock now has a 50-day MA of $2.99 and 200-day MA of $2.41. Today’s last price is 12.67%% below the 52 week high of $3.46.
Earnings growth is a critical factor to consider when investing in stocks and investors identify companies that have raised their earnings by at least 25% over the past 3 years.
DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of the website. Readers should not consider statements made by the author as formal recommendations and should consult their financial adviser before making any investment decisions. To read our full disclosure, please see our terms and conditions page.