Scynexis Inc. (NASDAQ: SCYX) shares rose in early trading today on lighter trade volume than normal after more analysts initiated coverage on the stock.
Analysts at Brean Capital initiated coverage on Scynexis Inc. (NASDAQ: SCYX) stock, rating the company at Buy. With a rating of Buy on the stock, Scynexis Inc. has a 52-week high of $7.69. The one-year price target of $12.86 is higher than the opening price of $4.09, resulting a number of other analysts to report on the company in recent days. Analysts and brokerage firms will subsequently publish periodic updates after beginning or initiating coverage. Price changes targets are not uncommon.
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 Scynexis Inc. (NASDAQ: SCYX) opened at $4.09 yesterday and traded in a range between, $4.04 and $4.45, and last traded at $4.33, an increase of $0.46 or 0.12 over the previous closing price.
Scynexis Inc. (NASDAQ: SCYX) currently has a market cap of 101.43M.
Scynexis Inc.Trading Volume
459,535 shares crossed the trading desk yesterday, below the average, out of a total float 19,746,000. Look for trading volume to pick up in the coming days as momentum traders often use increases in trading volume to pinpoint heavy volume growth or circulation by institutional investors.
While increased trading for short periods will not mean much, conversely, a trend of heavy trading volume on the buy side over a series of days or weeks sends a positive signal to market traders that institutions may be moving in, so institutional sponsorship is critical.
Institutional sponsorship simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors retain 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.
Scynexis 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 following the activity of these professional investors—and the moving averages they influence— traders are able to make make educated trades.
Trades for Scynexis Inc. (NASDAQ: SCYX) have ranged from $1.74 – 7.69, and the stock now has a 50-day MA of $3.08 and 200-day MA of $3.18. Today’s last price is 0.44% below the 52 week high of $7.69.
Earnings growth is a crucial factor to look at when investing in stocks and investors identify companies that have grown their earnings by at least 25% over a 3 year period.
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