Zogenix, Inc. (ZGNX) Shares Tick Up after Upgrade at Zacks Investment Research

Zogenix, Inc. (NASDAQ: ZGNX) shares rose in value on Wednesday January 18 on slower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.

Meanwhile, in early trade today, the S&P 500 SPX, +0.00% was off 2 points, or 0.1%, at 2,265, shortly after open. The Nasdaq Composite COMP, +0.20% was flat at 5,537. The Dow Jones Industrial Average DJIA, -0.20% slipped 54 points or 0.3%, to 19,770.

Analysts at Zacks Investment Research upgraded shares of Zogenix, Inc. (NASDAQ: ZGNX) from Hold to Strong-Buy today. Zacks Investment Research currently has a rating of Strong-Buy on the shares. A number of other analysts have spoken on the company recently, and the company has earned a consensus one-year price target of $19.80, above the opening price of $9.75. Zogenix, Inc. stock has a 52-week high of $13.70. Stock prices often move to the upside on recommendations and new price targets of professional brokerage firms.

Shares of Zogenix, Inc. (NASDAQ: ZGNX) opened at $9.75 yesterday trading between $9.65 and $10.05, and last traded at $10.00, which represents a spike of $0.35 compared to the previous closing price.

Zogenix, Inc. (NASDAQ: ZGNX) currently has a market cap of 247.90M.

Zogenix, Inc. (NASDAQ: ZGNX) Average Daily Trading Volume

The stock’s average daily volume is 223,323 shares out of a total float 17,645,000 and some 39,980 shares crossed the trading desk yesterday, 5 percent below the average. lower than normal. Look for trading volume to pick up in the coming days as investors often use upticks 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.

Professional investors such as these have substantial teams of analysts researching thousands of stocks. Thus, watching their interests is a good way to ensure you are buying the right stocks.

Zogenix, Inc. (NASDAQ: ZGNX) 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 winning trades.

With that in mind, Zogenix, Inc. (NASDAQ: ZGNX) now has a 50-day MA of $12.30 and 200-day MA of $10.25. It has traded in a 52-week range between $7.33 – 13.70 and today’s last price is 27.01%% lower than the 52 week high of $13.70.

Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors identify companies that have increased their earnings by at least 25% over a 3 year period.

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