Pfenex Inc. (NYSEMKT: PFNX) shares slid back in value on Friday January 20 on lighter trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile, U.S. stocks rose Friday morning as Wall Street closely awaited Donald Trump’s inauguration as the nation’s 45th president.
The Dow Jones Industrial Average DJIA, +0.41% rose 95 points, or 0.5%, to 19,826, while the S&P 500 index SPX, +0.41% climbed 11 points, or 0.5%, to 2,275 and the Nasdaq Composite COMP, +0.37% added 28 points, or 0.6%, to 5,571.
Analysts at Zacks Investment Research upgraded shares of Pfenex Inc. (NYSEMKT: PFNX) from Hold to Buy today. With a rating of Buy on the shares, the company has a 52-week high of $11.35. The one-year price target of $20.00 is higher than the opening price of $8.12, that has caused a fair amount of other analysts to issue statements on the company in recent days. Stock prices sometimes get a spike to the upside when analysts upgrade a stock.
Yesterday Pfenex Inc. (NYSEMKT: PFNX) shares last traded at $8.02, which represents a dip of $0.15 from the previous closing price. Opening at $8.12, they ranged from $7.74 and $8.12 throughout the day.
Pfenex Inc. (NYSEMKT: PFNX) currently has a market cap of 187.81M.
Pfenex Inc. (NYSEMKT: PFNX) Average Daily Trading Volume
31,232 shares traded hands yesterday, 113 percent below the average, out of a total float 18,184,000. 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.
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.
Professional investors such as these retain substantial teams of analysts that investigate thousands of stocks. Thus, watching their interests is a good way to ensure you are buying the right stocks.
Pfenex Inc. (NYSEMKT: PFNX) 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 traders to make those trends work in their favor and increase the number of successful trades.
With that in mind, Pfenex Inc. (NYSEMKT: PFNX) now has a 50-day MA of $9.21 and 200-day MA of $8.84. It has traded in a 52-week range between $5.78 – 11.35 and today’s last price is 29.34%% lower than the 52 week high of $11.35.
Earnings growth is an important factor to consider when investing in stocks and investors watch for companies that have grown their earnings at least 25% or more over 3 consecutive years.
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