ARCA biopharma, Inc. (ABIO) Stock Is Bruised, But Is It Still a Buy?

Despite closing 0 points higher on 14 March, ARCA biopharma, Inc. (NASDAQ:ABIO) remains a key investment for many, but the stock is also a popular trading vehicle. Here’s how to trade it using charts and trading levels Friday. The shares accumulated 1.47 percent at $0.41 with a light trade volume of 2.155 million shares. After opening the session at $0.4029, the shares went as high as $0.4297 and as low as $0.4, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $7.91 million and now has 19.07 million shares outstanding. ARCA biopharma, Inc. (ABIO) stock has gained 10.67 percent of market value in 21 trading days.

ABIO stock has a trailing 3-year beta of 2.09, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was -$0.57 a share in the trailing twelve months. The stock’s value has surged 24.44 percent year to date (YTD) against a decline of -32.26 percent in 12 month’s time. The company’s shares still trade -67.58 percent away from its 1-year high of $1.28 and 58.1 percent up from 52-week low of $0.26. The average consensus rating on the company is 0, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.

ARCA biopharma, Inc. (ABIO) will probably climb -100 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $0.9-month high price target. This represents a whopping 119.51 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $0.9, which represents a return potential of 119.51 percent when compared to the closing price of the stock of $0.41 on Thursday, March 14. The lowest price target for the stock is $0.9 — slightly more than 119.51 percent from ABIO’s current share price.

History has shown that shares in ARCA biopharma, Inc. have gone down on 26 different earnings reaction days and are predicted to add 0.04 percent when the company reports upcoming earnings.

The stock is currently hovering around the first support level of $0.4. Below this, the next support is placed in the zone of $0.39. Till the time, the ABIO stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 45.76 on daily chart, which may remain a cause for concern. If the price breaks below $0.39 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $0.43 mark may result into a pull-back move towards $0.44 level.