Veracyte Inc. (VCYT) Stock Moves Down and Here’s Why

Veracyte Inc. (NASDAQ: VCYT) shares rose on Tuesday Dec 13 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, the Dow DJIA, +0.47% climbed 106 points, or 0.6%, to 19,905. If the Dow finishes higher, it will notch its seventh straight gain.

The S&P 500 index SPX, +0.56% gained 10.45 points, or 0.5%, to 2,267 and the tech-heavy Nasdaq Composite Index COMP, +1.02% added 48 points, or 0.9%, to 5,461.

Both the S&P 500 index SPX, +0.56% and Nasdaq Composite COMP, +1.02% ended lower on Monday, with investors appearing reluctant to push shares higher ahead of the Fed meeting

Shares of Veracyte Inc. (NASDAQ: VCYT) were downgraded by analysts at Zacks Investment Research in a note to their investors today. With a rating of Hold on the stock, the company has a 52-week high of $8.45. The one-year price target of $11.14 is higher than the opening price of $7.42, resulting a number of other analysts to comment on the company in recent days. Downgrades happen when analysts feel that the future prospects for the security have weakened from the initial recommendation, often because of a considerable and major digression in the company’s procedures, future direction or industry.

Veracyte Inc. (NASDAQ: VCYT) shares last traded at $7.43, which is a spike of $0.04 or 0.54% over the previous closing price. Opening at $7.42, they varied from $7.38 and $7.49 throughout the day.

Veracyte Inc. (NASDAQ: VCYT) now has a market cap of 207.67M.

Veracyte Inc. (NASDAQ: VCYT) Average Daily Trading Volume

The stock’s average daily volume is 112,702 shares out of a total float 14,479,000 and some 6,982 shares crossed the trading desk yesterday, below the norm. Trading volume is likely to increase in the next few days as momentum traders often use swings in trading volume to determine substantial volume growth or distribution by institutional investors.

While increased trading for one day will not mean much, however, a trend of heavy trading volume on the buy side over a series of days or weeks expresses a positive indicator 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 professional investors retain teams of analysts that research thousands of stocks, so it is good corroboration to see them buying a stock you’re researching.

Veracyte Inc. (NASDAQ: VCYT) 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.

Traders can make more impactful judgments on trades when they track the trading habits of professional investors.

With that in mind, Veracyte Inc. (NASDAQ: VCYT) now has a 50-day MA of $7.37 and 200-day MA of $6.25. It has traded in a 52-week range between $4.21 – 8.45 and today’s last price is 12.07%% lower than the 52 week high of $8.45.

Earnings growth is an important factor to research when buying stocks and investors seek companies that have grown their earnings at least 25% or more over the past 3 years.

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