Why Adverum Biotechnologies Stock Is Trading Higher

Adverum Biotechnologies, Inc. ADVM shares are trading higher Monday after the company announced that it has agreed to sell approximately 106.25 million shares in a $127.5 million private placement.

The Details:

Adverum will sell the shares at a price per share of $1.20, representing a premium of approximately 20% to its stock’s 30-day volume-weighted average price, and the financing is expected to close on Feb. 8.

Adverum anticipates the gross proceeds from the private placement to be approximately $127.5 million, before deducting any offering related expenses and are expected to be sufficient to fund the current operating plan into late 2025.

Also, on Feb. 8 Adverum will host a webcast to review preliminary efficacy and safety data from its ongoing LUNA Phase 2 study of ixoberogene soroparvovec for the treatment of wet age-related macular degeneration.

Adverum shares are moving on heavy trading volume following the announcement of the $127.5 million private placement. According to data from Benzinga Pro, more than 15.4 million shares have already been traded in the session, compared to the stock’s 100-day average volume of less than 492,000 shares.

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ADVM Stock Prediction 2024

Equity research analysts on and off Wall Street typically use earnings growth and fundamental research as a form of valuation and forecasting. But many in trading turn to technical analysis as a way to form predictive models for share price trajectory.

Some investors look to trends to help forecast where they believe a stock could trade at a certain point in the future. Looking at Adverum Biotechnologies, an investor could make an assessment about a stock's long term prospects using a moving average and trend line. If they believe a stock will remain above the moving average, which many believe is a bullish signal, they can extrapolate that trend into the future using a trend line. For Adverum Biotechnologies, the 200-day moving average sits at $1.25, according to Benzinga Pro, which is below the current price of $1.88. For more on charts and trend lines, see a description here.

Traders believe that when a stock is above its moving average, it is a generally bullish signal, and when it crosses below, it is a more negative signal. Investors could use trend lines to make an educated guess about where a stock could trade at a later date if conditions remain stable.

ADVM Price Action: According to Benzinga Pro, Adverum Biotechnologies shares are up 23% at $1.75 at the time of publication.

Image: Gerd Altmann from Pixabay