Recro Pharma Inc. (NASDAQ: REPH) shares rose in early trading today on lower trade volume than normal after more analysts initiated coverage on the stock.
Analysts at Brean Capital initiated coverage on Recro Pharma Inc. (NASDAQ: REPH) stock, rating the company at Buy. Brean Capital currently has a rating of Buy on the shares. A number of other analysts have spoken on the stock in recent days, and the company has secured a consensus one-year price target of $23.67, higher than the opening price of $8.92. Recro Pharma Inc. stock has a 52-week high of $12.86. Analysts and brokerage firms will subsequently issue periodic updates after initiating coverage,. Price changes targets are not unusual.
Meanwhile, US stock opened lower amid concerns surrounding the U.S. Department of Justice’s probe into Deutsche Bank AG.
The S&P 500 SPX, -0.25% slipped 5 points, or 0.2%, to 2,162.
The Dow industrials DJIA, -0.26% fell 55 points, or 0.3%, to 18,252.
The Nasdaq Composite COMP, -0.11% was off 13 points, or 0.3%, to 5,298
Shares of Recro Pharma Inc. (NASDAQ: REPH) opened at $8.92 yesterday trading between $8.85 and $9.03, and last traded at $9.00, which is a jump of $0.16 or 0.02 compared to the previous closing price.
Recro Pharma Inc. (NASDAQ: REPH) currently has a market cap of 88.82M.
Recro Pharma Inc.Trading Volume
The stock’s average daily volume is 46,683 shares out of a total float 4,521,000 and some 11,556 shares traded hands yesterday, lower than the norm. Momentum traders often use upticks in trading volume to identify substantial volume aggregation or distribution by institutional investors, so look for trading volume to pick up in the coming days.
However, just a day of heavy buy side trading is not enough to determine a trend. So market traders will continue to watch for institutional sponsorship as a signal 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 that research thousands of stocks, so it is good confirmation to see them buying a stock you’re researching.
Recro Pharma Inc. 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 Recro Pharma Inc. (NASDAQ: REPH) have ranged from $5.59 – 12.86, and the stock now has a 50-day MA of $9.21 and 200-day MA of $8.01. Today’s last price is 0.30% under the 52 week high of $12.86.
Earnings growth is a critical factor to look at when investing in stocks and investors seek companies that have increased their earnings at least 25% or more over 3 consecutive years.
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