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Key for Investors: How Are Biotech Stocks Trending?

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Biotech stocks’ trend

The iShares Nasdaq Biotechnology ETF (IBB) has 145 stocks in its portfolio. The various moving averages indicate the direction that the biotech stocks are moving in the short term, medium term, and long term. For the week ending July 31, 2015, 53.10% of the stocks were trading in the 20-day moving averages, 62.76% of the stocks were trading in the 50-day moving averages, and 66.90% of the stocks were trading in the 100-day moving averages.

 

For the previous week ending July 24, 2015, the numbers were 46.90%, 58.62%, and 61.38%, respectively. There has been an 6% rise in shares trading above the 20-day moving averages week-over-week. This indicates an upward trend in the short term.

The above chart indicates the number of stocks trading above the 100-day moving averages on a week-over-week basis from July 6–31, 2015.

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100-day moving average

Amgen (AMGN), Vertex Pharmaceuticals (VRTX), and Akorn (AKRX) moved into the 100-day moving averages territory for the week ending July 31, 2015. All of them announced positive 2Q15 results. All of these stocks were trading below the 100-day moving averages for the week ending July 24, 2015.

Dyax (DYAX) had stocks that fell out of the 100-day moving averages. It announced its 2Q15 results. According to the company’s press releases, Dyax reported revenue of $26.4 million and a net loss of $8.4 million. Intercept Pharmaceuticals (ICPT) was trading marginally lower than the 100-day moving averages. It’s due to announce its 2Q15 results on August 5, 2015.

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