Arbutus Biopharma Corp. (NASDAQ: ABUS) shares fell on Tuesday Dec 13 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a downgraded rating.
Meanwhile, the Dow DJIA, +0.47% climbed 106 points, or 0.6%, to 19,905. If the Dow finishes higher, it will notch its seventh straight gain.
The S&P 500 index SPX, +0.56% gained 10.45 points, or 0.5%, to 2,267 and the tech-heavy Nasdaq Composite Index COMP, +1.02% added 48 points, or 0.9%, to 5,461.
Both the S&P 500 index SPX, +0.56% and Nasdaq Composite COMP, +1.02% ended lower on Monday, with investors appearing reluctant to push shares higher ahead of the Fed meeting
Analysts at Chardan Capital downgraded shares of Arbutus Biopharma Corp. (NASDAQ: ABUS) from Buy to Neutral in a research note to investors today. With a rating of Neutral on the shares, Arbutus Biopharma Corp. has a 52-week high of $5.48. The one-year price target of $7.88 is higher than the opening price of $3.00, causing a number of other analysts to comment on the company recently. Material and major digressions in the company’s procedures, future outlook or industry can cause downgrades as the analysts consider that the future prospects for the security have diminished from the initial recommendation.
Shares of Arbutus Biopharma Corp. (NASDAQ: ABUS) opened at $3.00 on Tuesday trading between $2.65 and $3.00, and last traded at $2.73, which is a dip of $0.23 per share or -7.63% over the previous closing price.
Arbutus Biopharma Corp. (NASDAQ: ABUS) now has a market cap of 149.44M.
Arbutus Biopharma Corp. (NASDAQ: ABUS) Average Daily Trading Volume
198,723 shares traded hands yesterday, below the average, out of a total float 34,611,000. Trading volume is likely to increase in the next few days as swing traders often use swings in trading volume to pinpoint large volume growth or circulation by institutional investors.
As with all potential breakouts, investors look 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.
These instituitional investors have teams of analysts researching thousands of stocks, so it is good validation to see them buying a stock you’re considering.
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 spotting trends, moving averages allow investors to make those trends work in their favor and increase the number of winning trades.
Trades for Arbutus Biopharma Corp. (NASDAQ: ABUS) have ranged from $2.45 – 5.480, and the stock now has a 50-day MA of $2.91 and 200-day MA of $3.52. Today’s last price is 50.27%% lower than the 52 week high of $5.48.
Earnings growth is an important factor to look at when investing in stocks and investors seek companies that have raised their earnings by at least 25% over a 3 year period.
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