Arbutus Biopharma Corp. (NASDAQ: ABUS) shares rose in value Wednesday Nov 30 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, the Dow Jones Industrial Average hit an intraday record after opening higher Wednesday, led by the energy sector as hopes rose that the world’s major oil producers are near a deal on limiting output.
The benchmark S&P 500 and Dow were on track to post their largest monthly gains since March.
The S&P 500 SPX, +0.22% gained 5 points, or 0.2%, to 2,209. The Dow Jones Industrial Average DJIA, +0.41% added 62 points, or 0.3%, to 19,184, trading in record territory. The Nasdaq Composite COMP, -0.08% was 7 points, or 0.1%, higher at 5,386.
Analysts at Chardan Capital upgraded shares of Arbutus Biopharma Corp. (NASDAQ: ABUS) from Neutral to Buy today. With a rating of Buy on the shares, Arbutus Biopharma Corp. has a 52-week high of $5.79. As a means of comparison, a number of other analysts have issued reports on the company recently, and Arbutus Biopharma Corp. has earned a consensus one-year price target of $7.75, higher than the opening price of $2.75, a difference of 27.88 percent. Share prices often shift to the upside on recommendations and new price targets of professional analysts.
Shares of Arbutus Biopharma Corp. (NASDAQ: ABUS) opened at $2.75 on Tuesday trading between $2.65 and $2.85, and last traded at $2.78, a jump of $0.13 or 4.72% over the previous closing price.
Arbutus Biopharma Corp. (NASDAQ: ABUS) currently has a market cap of 152.18M.
Arbutus Biopharma Corp. (NASDAQ: ABUS) Average Daily Trading Volume
The stock’s average daily volume is 148,736 shares out of a total float 34,611,000 and some 88,758 shares crossed the trading desk yesterday, below normal. Look for trading volume to pick up in the coming days as swing traders often use upticks in trading volume to determine heavy volume growth or circulation by institutional investors.
However, one day of significant buy side trading is not enough to assert a trend. So market traders will continue to watch for institutional sponsorship as a cue that financial institutions are moving forward.
Institutional sponsorship simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors have substantial teams of analysts researching thousands of stocks, so it is good validation to see them buying a stock you’re researching.
Arbutus Biopharma Corp. (NASDAQ: ABUS) 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 marking the activity of these professional investors—and the moving averages they affect—it allows for traders to make more useful judgments on trades.
With that in mind, Arbutus Biopharma Corp. (NASDAQ: ABUS) now has a 50-day MA of $2.95 and 200-day MA of $3.61. It has traded in a 52-week range between $2.45 – 5.790 and today’s last price is 52.07%% lower than the 52 week high of $5.79.
Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors seek companies that have raised their earnings at least 25% or more over the past 3 years.
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