Why Aptevo Therapeutics Stock Is Cratering

Aptevo Therapeutics Inc. APVO shares are trading lower Thursday after the company priced its $4.6 million public offering.

The Details:

Aptevo announced the pricing of a public offering of 3,400,000 shares of its common stock or pre-funded warrants in lieu thereof and warrants to purchase up to an aggregate of 6,800,000 shares of its common stock at a purchase price of $1.35 per share.

Aptevo shares are dropping on heavy trading volume. According to data from Benzinga Pro, more than 3.8 million shares have been traded in the session, compared to the stock’s 100-day average of slightly more than 138,000 shares.

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APVO 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 Aptevo Therapeutics, 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 Aptevo Therapeutics, the 200-day moving average sits at $16.38, according to Benzinga Pro, which is above the current price of $1.05. 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.

APVO Price Action: According to Benzinga Pro, Aptevo Therapeutics shares are down by more than 59% at $0.98 at the time of publication Thursday.

Image: james-yarema from Unsplash