Why enGene Holdings (ENGN) Stock Is Exploding Higher

enGene Holdings Inc ENGN shares are trading higher by 45.2% to $11.40 Wednesday morning. The company’s CEO Jason Hanson is resigning due to personal family and health reasons, though he will continue to support the company as a strategic advisor after a successor is appointed.

Concurrently, enGene announced a private placement of 20 million common shares at $10.00 per share, representing a 31% premium over the previous day’s closing price. The financing, expected to close on February 16, aims to raise $200 million in gross proceeds, subject to customary closing conditions.

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ENGN 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 enGene Holdings, 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 enGene Holdings, the 200-day moving average sits at $8.48, according to Benzinga Pro, which is below the current price of $12.06. 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.

ENGN has a 52-week high of $43.00 and a 52-week low of $6.69.