Clovis Oncology Inc. (NASDAQ: CLVS) shares rose on Monday January 23 on lighter trade volume than normal after a number of analysts weighed in on the investing value of the stock, boosting the price target of stock.
Meanwhile, U.S. stocks flipped between small gains and losses in early trade on Monday.
The Dow Jones Industrial Average DJIA, -0.14% was off by 13 points, or less than 0.1%, at 19,815, with McDonald’s Corp MCD, -0.99% and General Electric CoGE, -0.95% leading the losses, down more than 1%.
The S&P 500 SPX, -0.18% slipped 2 point to 2,270, with five of the main sectors trading lower. The Nasdaq Composite COMP, -0.09% gained 4 points to 5,558.
Clovis Oncology Inc. (NASDAQ: CLVS) had its price target increased by equities researchers at Stifel Nicolaus from $52.00 to $86.00. With a rating of Buy on the stock, Clovis Oncology Inc. has a 52-week high of $61.00. A number of other analysts have issued reports on the stock recently, and the company has secured a consensus one-year price target of $49.00, less than the opening price of $60.00.
Yesterday Clovis Oncology Inc. (NASDAQ: CLVS) shares last traded at $59.24, a jump of $0.95 from the previous closing price. Opening at $60.00, they ranged from $58.60 and $61.00 throughout the day.
Clovis Oncology Inc. (NASDAQ: CLVS) now has a market cap of 2.29B.
Clovis Oncology Inc. (NASDAQ: CLVS) Average Daily Trading Volume
The stock’s average daily volume is 2,200,880 shares out of a total float 26,364,000 and some 559,721 shares traded hands yesterday, 71 percent below the average. lower than normal. Look for trading volume to pick up in the coming days as momentum traders often use increases 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 commonly refers to 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.
Clovis Oncology Inc. (NASDAQ: CLVS) 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.
With that in mind, Clovis Oncology Inc. (NASDAQ: CLVS) now has a 50-day MA of $44.66 and 200-day MA of $30.53. It has traded in a 52-week range between $11.57 – 61.000 and today’s last price is 2.89%% lower than the 52 week high of $61.00.
Earnings growth is a critical factor to research when investing in stocks and investors look for companies that have increased their earnings at least 25% or more for 3 consecutive years.
DISCLOSURE: The views and opinions expressed in this article do not represent the views of the website. Readers should not consider statements made by the author as formal recommendations and should consult their financial adviser before making any investment decisions. To read our full disclosure, please see our terms and conditions page.