Rigel Pharmaceuticals Inc. (RIGL) Shares Active after Upgrade at Zacks Investment Research

Rigel Pharmaceuticals Inc. (NASDAQ: RIGL) shares rose in value Tuesday Dec 6 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.

Meanwhile, U.S. stocks looked for direction on Tuesday with the Dow industrials trying for a fresh record a day after closing at an all-time high in the previous session.

The Dow Jones Industrial Average DJIA, -0.08% opened little-changed at 19,221, the S&P 500 index SPX, -0.01% climbed 2 points, or 0.1%, at 2,206, while the Nasdaq Composite Index COMP, +0.20%

Analysts at Zacks Investment Research upgraded shares of Rigel Pharmaceuticals Inc. (NASDAQ: RIGL) from Hold to Buy today. Zacks Investment Research currently has a rating of Buy on the shares. A number of other analysts have spoken on the company in recent days, and the company has secured a consensus one-year price target of $6.20, above the opening price of $2.58, a difference of 23.85 percent. Rigel Pharmaceuticals Inc. stock has a 52-week high of $4.38. Stock prices often trend to the upside on recommendations and new price targets of professional analysts.

Shares of Rigel Pharmaceuticals Inc. (NASDAQ: RIGL) opened at $2.58 on Tuesday trading between $2.55 and $2.64, and last traded at $2.60, which represents a spike of $0.03 or 1.17% compared to the previous closing price.

Rigel Pharmaceuticals Inc. (NASDAQ: RIGL) now has a market cap of 257.24M.

Rigel Pharmaceuticals Inc. (NASDAQ: RIGL) Average Daily Trading Volume

The stock’s average daily volume is 1,388,820 shares out of a total float 93,618,000 and some 81,709 shares crossed the trading desk yesterday, below the average. Trading volume is likely to increase in the next few days as momentum traders often use increases in trading volume to pinpoint substantial volume aggregation or distribution by institutional investors.

While increased trading for short periods will not mean much, however, a trend of heavy trading volume on the buy side over a series of days or weeks delivers a positive signal to market traders that institutions may be moving in, so institutional sponsorship is critical.

Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.

These instituitional investors retain teams of analysts that investigate thousands of stocks, so it is good corroboration to see them taking a postion in a stock you are researching.

Rigel Pharmaceuticals Inc. (NASDAQ: RIGL) 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, traders are able to make make well planned trades.

With that in mind, Rigel Pharmaceuticals Inc. (NASDAQ: RIGL) now has a 50-day MA of $2.76 and 200-day MA of $2.82. It has traded in a 52-week range between $1.88 – 4.38 and today’s last price is 40.64%% lower than the 52 week high of $4.38.

Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors identify companies that have grown their earnings by at least 25% over a 3 year period.

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