Galmed Pharmaceuticals Ltd. (NASDAQ: GLMD) shares rose 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.
Analysts at Zacks Investment Research downgraded shares of Galmed Pharmaceuticals Ltd. (NASDAQ: GLMD) from Buy to Hold in a research note to investors today. Zacks Investment Research currently has a rating of Hold on the stock. The one-year price target of $13.40 is above the opening price of $3.70, resulting a fair amount of other analysts to report on the company recently. Looking back over the last year, Galmed Pharmaceuticals Ltd. stock has a high of $9.70. Downgrades happen when analysts believe that the future prospects for the security have weakened from the original recommendation, usually because of a considerable and crucial change in the company’s actions, future vision or industry.
Shares of Galmed Pharmaceuticals Ltd. (NASDAQ: GLMD) opened at $3.70 on Monday and traded in a range between, $3.70 and $3.77, and last traded at $3.75, which represents a jump of $0.06 or 1.63% over the previous closing price.
Galmed Pharmaceuticals Ltd. (NASDAQ: GLMD) currently has a market cap of 45.56B.
Galmed Pharmaceuticals Ltd. (NASDAQ: GLMD) Average Daily Trading Volume
The stock’s average daily volume is 112,875 shares out of a total float 6,130,000 and some 2,402 shares traded hands yesterday, below normal. Trading volume is likely to increase in the next few days as swing traders often use increases in trading volume to determine large volume aggregation or distribution by institutional investors.
However, just a day of heavy buy side trading is not enough to assert a trend. So market traders will continue to look for institutional sponsorship as an indicator that financial institutions are moving forward.
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 substantial teams of analysts researching thousands of stocks. Thus, watching their interests is a good way to make sure you are buying the right stocks.
Galmed Pharmaceuticals Ltd. (NASDAQ: GLMD) 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 traders to make those trends work in their favor and increase the number of successful trades.
Trades for Galmed Pharmaceuticals Ltd. (NASDAQ: GLMD) have ranged from $2.78 – 9.70, and the stock now has a 50-day MA of $3.85 and 200-day MA of $4.26. Today’s last price is 61.34%% under the 52 week high of $9.70.
Earnings growth is a crucial factor to look at when investing in stocks and investors identify companies that have raised their earnings at least 25% or more 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.