Dicerna Pharmaceuticals, Inc. (NASDAQ: DRNA) shares traded mostly flat on Tuesday January 31 on lower trade volume than normal after more analysts initiated coverage on the stock.
Meanwhile, The Dow Jones Industrial Average DJIA, -0.60% fell 140 points, or 0.7%, to 19,833, with 26 of the 30 blue-chip companies trading lower. Nike, Inc. NKE, -1.10% down 2.4% and Intel Corp. INTC, -1.70% off 1%, were leading losses.
The S&P 500 SPX, -0.33% was off by 10 points, or 0.5%, to 2,270 with seven of the 11 main sectors trading lower. Industrials, consumer-discretionary, and technology shares were the worst performers, while real estate and utilities stocks attracted buyers.
The health-care sector, which was down in early trade, rebounded after President Trump called for scaling back drugmaker’s regulation, lowering taxes and prices of medicines.
The Nasdaq Composite COMP, -0.25% declined 31 points, or 0.6%, to 5,581.
Analysts at Leerink Swann initiated coverage on Dicerna Pharmaceuticals, Inc. (NASDAQ: DRNA) stock, rating the company at Market Perform. Leerink Swann currently has a rating of Market Perform on the shares. A number of other analysts have spoken on the stock in recent days, and Dicerna Pharmaceuticals, Inc. has earned a consensus one-year price target of $7.50, above the opening price of $2.60. Dicerna Pharmaceuticals, Inc. stock has a 52-week high of $7.74. Changes in price targets are not unusual as analysts and brokerage firms will publish periodic updates after beginning or initiating coverage.
Yesterday Dicerna Pharmaceuticals, Inc. (NASDAQ: DRNA) shares last traded at $2.60. Opening at $2.60, they ranged from $2.55 and $2.62 throughout the day.
Dicerna Pharmaceuticals, Inc. (NASDAQ: DRNA) now has a market cap of 53.96M.
Dicerna Pharmaceuticals, Inc. (NASDAQ: DRNA) Average Daily Trading Volume
9,704 shares traded hands yesterday, 110 percent lower than the average, out of a total float 12,488,000. 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 short periods will not mean much will not mean much, conversely, 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 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 researching thousands of stocks, so it is good confirmation to see them buying a stock you’re researching.
Dicerna Pharmaceuticals, Inc. (NASDAQ: DRNA) 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 traders to make those trends work in their favor and increase the number of successful trades.
Trades for Dicerna Pharmaceuticals, Inc. (NASDAQ: DRNA) have ranged from $2.55 – 7.74, and the stock now has a 50-day MA of $2.94 and 200-day MA of $3.45. Today’s last price is 66.41%% under the 52 week high of $7.74.
Earnings growth is a crucial factor to look at when buying stocks and investors identify companies that have grown their earnings at least 25% or more over 3 consecutive years.
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