CymaBay Therapeutics Inc. (NASDAQ: CBAY) shares rose on Wednesday Jan 4 with heavier trade volume than normal after a number of analysts weighed in on the investing value of the stock, raising the price target of stock.
Meanwhile, U.S. stocks opened higher on Wednesday as banking stocks led the Dow Jones Industrial Average closer to the 20,000 milestone.
The Dow DJIA, +0.18% gained 25 points, or 0.1%, to 19,906. The S&P 500 SPX, +0.36% climbed four points, or 0.2%, to 2,262. The Nasdaq Composite Index COMP, +0.50% added 13 points, or 0.3%, to 5,447.
CymaBay Therapeutics Inc. (NASDAQ: CBAY) had its price target raised by equities researchers at HC Wainwright from $1.50 to $2.50. With a rating of Neutral on the shares, CymaBay Therapeutics Inc. has a 52-week high of $3.04. As a means of comparison, a number of other analysts have issued reports on the stock in recent days, and the company has secured a consensus one-year price target of $6.50, higher than the opening price of $2.67, a difference of 27.31 percent.
CymaBay Therapeutics Inc. (NASDAQ: CBAY) shares last traded at $2.38, which represents an increase of $0.48 or 0.25 from the previous closing price. Opening at $2.67, they ranged from $2.32 and $2.67 throughout the day.
CymaBay Therapeutics Inc. (NASDAQ: CBAY) currently has a market cap of 55.80M.
CymaBay Therapeutics Inc. (NASDAQ: CBAY) Average Daily Trading Volume
2,896,536 shares crossed the trading desk yesterday, higher than the norm, out of a total float 21,469,000. higher than normal. Significant increases in trading volume and price appreciation together could signal heavy volume accumulation by institutional investors.
While increased trading for short periods will not mean much will not mean much, however, a trend of heavy trading volume on the buy side over a period of days or weeks sends a positive signal to market traders that institutions may be moving in, so institutional sponsorship is very important.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors retain substantial teams of analysts researching thousands of stocks. So watching their interests is a good way to ensure you are buying the right stocks.
CymaBay Therapeutics Inc. (NASDAQ: CBAY) 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 investors to make those trends work in their favor and increase the number of successful trades.
Trades for CymaBay Therapeutics Inc. (NASDAQ: CBAY) have ranged from $0.82 – 3.04, and the stock now has a 50-day MA of $1.87 and 200-day MA of $1.87. Today’s last price is 0.22% under the 52 week high of $3.04.
Earnings growth is a critical factor to look at when buying stocks and investors identify companies that have increased their earnings at least 25% or more over the past 3 years.
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