Mirati Therapeutics, Inc. (NASDAQ: MRTX) shares fell in early trading today on lower trade volume than normal after a number of analysts weighed in on the investing value of the stock and reiterated thier respective ratings.
Meanwhile, U.S. stocks edged lower Monday, with major indexes retreating from record levels.
The Dow Jones Industrial Average DJIA, -0.31% fell 48 points, or 0.2%, to 19,916, while the S&P 500 index SPX, -0.29% lost 5 points to 2,272, a drop of 0.2%. The Nasdaq Composite Index COMP, -0.03% rose 4 points to 5,529, a gain of about 0.1%.
Mirati Therapeutics, Inc. (NASDAQ: MRTX) had its Hold rating reiterated by equities researchers at Jefferies Group in a research note to investors. Jefferies Group currently has a rating of Hold on the shares. The one-year price target of $9.86 is higher than the opening price of $5.75, causing a fair amount of other analysts to issue statements on the company recently. Looking back over the last 52 weeks, Mirati Therapeutics, Inc. stock has a high of $29.81. Stock prices often move to the upside on recommendations and new price targets of professional brokerage firms.
Shares of Mirati Therapeutics, Inc. (NASDAQ: MRTX) opened at $5.75 yesterday trading between $5.50 and $5.85, and last traded at $5.55, which represents a drop of $0.15 compared to the previous closing price.
Mirati Therapeutics, Inc. (NASDAQ: MRTX) currently has a market cap of 110.58M.
Mirati Therapeutics, Inc. (NASDAQ: MRTX) Average Daily Trading Volume
The stock’s average daily volume is 153,967 shares out of a total float 12,040,000 and some 20,131 shares traded hands yesterday, 82 percent below the average. lower than normal. Look for trading volume to pick up in the coming days as momentum traders often use swings in trading volume to identify heavy volume accumulation or distribution by institutional investors.
As with all potential breakouts, investors look for volume to be at least 40%-50% higher than normal on the breakout to show that fund managers and other professional investors are jumping in.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these retain teams of analysts researching thousands of stocks, so it is good confirmation to see them taking a postion in a stock you are researching.
Mirati Therapeutics, Inc. (NASDAQ: MRTX) 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 tracking the activity of these professional investors—and the moving averages they affect—it allows for traders to make more effective decisions on trades.
Trades for Mirati Therapeutics, Inc. (NASDAQ: MRTX) have ranged from $4.40 – 29.81, and the stock now has a 50-day MA of $5.46 and 200-day MA of $5.42. Today’s last price is 81.38%% under the 52 week high of $29.81.
Earnings growth is an important factor to look at when buying stocks and investors seek companies that have increased their earnings at least 25% or more over the past 3 years.
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