Revance Therapeutics, Inc. (NASDAQ: RVNC) shares fell in early trading yesterday lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a downgraded rating.
Meanwhile, U.S. stocks opened significantly lower in early trading. The Dow Jones Industrial Average was 58 points lower, or 0.29% to 19895, the S&P 500 fell 7 points, or 0.28% to 2268, while the Nasdaq dropped 22 points, or 0.38% to 5542.
Analysts at Zacks Investment Research downgraded shares of Revance Therapeutics, Inc. (NASDAQ: RVNC) from Hold to Sell in a research note to investors today. With a rating of Sell on the stock, the company has a 52-week high of $29.18. The one-year price target of $36.60 is higher than the opening price of $22.50, that has caused a fair amount of other analysts to report on the company in recent days. Downgrades happen when analysts feel that the future prospects for the security have diminished from the initial recommendation, often due to a material and fundamental digression in the company’s actions, future direction or industry.
Shares of Revance Therapeutics, Inc. (NASDAQ: RVNC) opened at $22.50 yesterday trading between $21.58 and $22.75, and last traded at $22.40, which represents a dip of $0.35 compared to the previous closing price.
Revance Therapeutics, Inc. (NASDAQ: RVNC) currently has a market cap of 638.74M.
Revance Therapeutics, Inc. (NASDAQ: RVNC) Average Daily Trading Volume
The stock’s average daily volume is 195,546 shares out of a total float 18,669,000 and some 6,418 shares traded hands yesterday, 22 percent lower than 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.
While increased trading for one day 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 simply refers to 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 corroboration to see them buying a stock you’re considering.
Revance Therapeutics, Inc. (NASDAQ: RVNC) 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 spotting trends, moving averages allow investors to make those trends work in their favor and increase the number of successful trades.
Trades for Revance Therapeutics, Inc. (NASDAQ: RVNC) have ranged from $12.35 – 29.18, and the stock now has a 50-day MA of $18.91 and 200-day MA of $15.71. Today’s last price is 23.24%% lower than the 52 week high of $29.18.
Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors identify companies that have grown their earnings by at least 25% over 3 consecutive years.
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