Dynavax Technologies Corp. (NASDAQ: DVAX) shares fell on Thursday Nov 17 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, stocks opened flat this morning, struggling for direction in early trade ahead of congressional testimony by Federal Reserve Chairwoman Janet Yellen. Ahead of an appearance before the Joint Economic Committee, Yellen said an interest-rate hike could come “relatively soon,”
The S&P 500 SPX, +0.25% fell less than 0.1% to 2,176.85 while Dow Industrials DJIA, -0.05% fell 9 points to 18,858. The Nasdaq Composite COMP, +0.18% declined 0.1% to 5,291.48.
Shares of Dynavax Technologies Corp. (NASDAQ: DVAX) were downgraded by analysts at Zacks Investment Research in a note to their investors today. The company currently has a rating of Sell on the stock. As a means of comparison, a number of other analysts have commented on the company in recent days, and the company has secured a consensus one-year price target of $26.00, higher than the opening price of $4.60, a difference of 59.09 percent. Dynavax Technologies Corp. stock has a 52-week high of $29.86. Downgrades happen when analysts believe that the future prospects for the security have weakened from the initial recommendation, usually caused by a considerable and major change in the company’s operations, future outlook or industry.
Dynavax Technologies Corp. (NASDAQ: DVAX) shares last traded at $4.40, which is a drop of $0.20 per share or -4.35% from the previous closing price. Opening at $4.60, they fluctuated from $4.30 and $4.60 throughout the day.
Dynavax Technologies Corp. (NASDAQ: DVAX) now has a market cap of 169.52B.
Dynavax Technologies Corp. (NASDAQ: DVAX) Average Daily Trading Volume
423,675 shares traded hands yesterday, lower than the norm, out of a total float 33,920,000. Investors often use upticks in trading volume to determine heavy volume accumulation or distribution by institutional investors, so trading volume is likely to increase in the next few days.
While higher trading for one day will not mean much, conversely, a trend of heavy trading volume on the buy side over a period of days or weeks sends a positive cue to market traders that institutions may be moving in, so institutional sponsorship is critical.
Institutional sponsorship commonly 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. So watching their interests is a good way to make sure you are buying the right stocks.
Dynavax Technologies Corp. (NASDAQ: DVAX) 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 how they influence moving averages,it allows for traders to make more useful decisions on trades.
Trades for Dynavax Technologies Corp. (NASDAQ: DVAX) have ranged from $3.20 – 29.86, and the stock now has a 50-day MA of $9.97 and 200-day MA of $13.58. Today’s last price is 85.26%% below the 52 week high of $29.86.
Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors watch for companies that have raised their earnings by at least 25% over a 3 year period.
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.