CymaBay Therapeutics Inc. (NASDAQ: CBAY) shares rose in value Monday Nov 14 with heavier trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile as investors continued to try and decipher policy proposals of President-elect Donald Trump’s administration, the Dow Jones Industrial Average DJIA, +0.11% rose 21.03 points, or 0.1%, to finish at 18,868.69, its third straight record close.
The blue-chip index had also touched a historic high of 18,934.05 during the session.
The S&P 500 index SPX, -0.01% fell 0.25 points to end at 2,164.20, and the Nasdaq Composite COMP, -0.36% dropped 18.72 points, or 0.4%, to close at 5,218.40.
Analysts at Zacks Investment Research upgraded shares of CymaBay Therapeutics Inc. (NASDAQ: CBAY) from Hold to Buy today. With a rating of Buy on the shares, CymaBay Therapeutics Inc. has a 52-week high of $3.04. The one-year price target of $6.44 is higher than the opening price of $1.98, resulting a number of other analysts to comment on the company in recent days. Stock prices sometimes get a bounce to the upside when analysts upgrade a stock.
CymaBay Therapeutics Inc. (NASDAQ: CBAY) shares last traded at $1.89, a spike of $0.08 or 4.16% compared to the previous closing price. Opening at $1.98, they fluctuated from $1.72 and $1.98 throughout the day.
CymaBay Therapeutics Inc. (NASDAQ: CBAY) now has a market cap of 44.20M.
CymaBay Therapeutics Inc. (NASDAQ: CBAY) Average Daily Trading Volume
The stock’s average daily volume is 101,726 shares out of a total float 21,469,000 and some 136,228 shares crossed the trading desk yesterday, higher than the norm. Significant gains in trading volume and price appreciation together could mean heavy volume accumulation by institutional investors.
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 is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Professional investors such as these retain teams of analysts that investigate thousands of stocks. Thus, watching their interests is a good way to make sure you are buying the right stocks.
CymaBay Therapeutics Inc. (NASDAQ: CBAY) 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 tracking the activity of these professional investors and how they affect moving averages, traders can make smarter trades.
Trades for CymaBay Therapeutics Inc. (NASDAQ: CBAY) have ranged from $0.82 – 3.0400, and the stock now has a 50-day MA of $1.69 and 200-day MA of $1.98. Today’s last price is 37.98%% under the 52 week high of $3.04.
Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors identify companies that have been successful at growing their earnings by at least 25% for 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.