Aerie Pharmaceuticals (NASDAQ: AERI) shares bounced off a new 52-week high of $38.98 today. A number of other brokerage analysts have issued statements on the stock recently, and the company has earned a consensus one-year price target of $50.25, $34.94.
Shares of Aerie Pharmaceuticals (NASDAQ: AERI) opened at $34.94 and traded in a range between, $34.90 and $38.98 yesterday, and last traded at $38.78, which represents a change of $ 4.66 over the previous closing price. Most stocks that hit a new 52-week high go higher.
The simplest, and best way to assemble a list of potential high performers is to refer to the new 52-week highs list.
Look for heavy-volume accumulation by institutional investors, particularly at buy points.
Aerie Pharmaceuticals (NASDAQ: AERI) now has a market cap of $1.08B
The average daily volume for Aerie Pharmaceuticals (NASDAQ: AERI) is 874,639 shares out of a total float 13,732,000 and some 3,410,886 shares traded hands on yesterday, 15 percent higher than normal. Significant increases in trading volume and price appreciation together could signal heavy volume accumulation by institutional investors.
As with all 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. If the share price rises sharply and the trading volume spikes well above average, that indicates demand.
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.
With that in mind Aerie Pharmaceuticals (NASDAQ: AERI) now has a 50-day MA is $20.33 and 200-day MA is $16.95, and it has traded in a 52-week range between $10.82 – 38.98 and Friday’s last price was -0.01 off the 52 week high.
Earnings growth is an important factor to look at when buying stocks and investors look for companies that have grown their earnings at least 25% or more for the past 3 years.
Research shows 3 out of 4 stocks follow the market’s trend, so you always want to trade in sync with the market direction.
The S&P 500 index SPX, +0.23% was up 2 points, or 0.1%, at 2,140 two hours ahead of the close
The Dow Jones Industrial Average DJIA, +0.24% rose 26 points, or 0.1%, to 18,146, with nearly two-thirds of the 30 blue-chip companies trading higher.
The Nasdaq Composite Index COMP, +0.24% advanced 3 points, or 0.1%, to 5,238, boosted by a rally in biotech stocks.
DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of this 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.