Clovis Oncology Inc. (NASDAQ: CLVS) shares rose on Monday Dec 5 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 Industrials on Monday opened at an all-time high as investors dismissed concerns about the outcome of Italy’s referendum on Sunday.
The Dow Jones Industrial Average rose DJIA, +0.41% 85 points, or 0.5%, at 19,260, the S&P 500 index SPX, +0.42% began trade 9 points, or 0.4%, higher at 2,201, while the Nasdaq Composite Index COMP, +0.43% advanced 27 points, or 0.5%, at 5,282.
Analysts at Vetr Inc. downgraded shares of Clovis Oncology Inc. (NASDAQ: CLVS) from Strong-Buy to Buy in a research note to investors today. With a rating of Buy on the stock, the company has a 52-week high of $40.29. The one-year price target of $35.00 is lower than the opening price of $36.50, that has caused a number of other analysts to issue statements on the company recently. Downgrades occur when analysts believe that the future prospects for the security have weakened from the initial recommendation, often because of a material and integral change in the company’s actions, future direction or industry.
Clovis Oncology Inc. (NASDAQ: CLVS) shares last traded at $36.70, an increase of $0.67 or 1.85% from the previous closing price. Opening at $36.50, they fluctuated from $35.79 and $36.71 throughout the day.
Clovis Oncology Inc. (NASDAQ: CLVS) now has a market cap of 1.42B.
Clovis Oncology Inc. (NASDAQ: CLVS) Average Daily Trading Volume
81,724 shares traded hands yesterday, below normal, out of a total float 22,672,000. Look for trading volume to pick up in the coming days as swing traders often use swings in trading volume to identify large volume growth or dissemination by institutional investors.
While an increase in trading for one day will not mean much, however, a trend of heavy trading volume on the buy side over a period of days or weeks delivers a positive cue to market traders that institutions may be moving in, so institutional sponsorship is very important.
Institutional sponsorship simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Professional investors such as these have substantial teams of analysts researching thousands of stocks, so it is good corroboration to see them buying a stock you’re considering.
Clovis Oncology Inc. (NASDAQ: CLVS) 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.
Trades for Clovis Oncology Inc. (NASDAQ: CLVS) have ranged from $11.57 – 40.290, and the stock now has a 50-day MA of $32.38 and 200-day MA of $23.00. Today’s last price is 8.92%% lower than the 52 week high of $40.29.
Earnings growth is a critical factor to consider when investing in stocks and investors identify companies that have raised their earnings at least 25% or more for 3 consecutive years.
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