The Stealth Reason Why Array BioPharma Inc. (ARRY) Is Hot

A handful of technical analysis tools are suggesting that Array BioPharma Inc. (NASDAQ:ARRY) overall gets 8% Buy rating. The stock is also flashing a Hold from the Barchart TrendSpotter trading system. Traders hoping to speculate on the ARRY’s short-term trajectory should know that short terms indicators for the stock averaged 40% Sell with an average daily trading volume over the past 20 days at 3556475 shares. ARRY stock has overall a 0.25% Buy signal considering medium term indicators and the 50-day average daily volume remained almost 3693978 shares. It’s also worth noting that the stock, whose average daily volume over the 100 days prior to this writing was 3232796 shares, is 67% Buy on the basis of long term indicators.

The share price is currently staying around the first support level of $21.43. Below this, the next support is placed in the zone of $21.04. Till the time, the ARRY stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 50.54 on daily chart, which may remain a cause for concern. If the price breaks below $21.04 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $22.15 mark may result into a pull-back move towards $22.48 level.

Array BioPharma Inc. (ARRY) is projected to climb by 22.91 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $34-month high price target. This represents a whopping 55.82 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $28, which represents a return potential of 28.32 percent when compared to the closing price of the stock of $21.82 on Friday, March 08. The lowest price target for the stock is $22 — slightly more than 0.82 percent from ARRY’s current share price.

Here’s a rundown of insider trading activity for sense of Array BioPharma Inc. (NASDAQ:ARRY).

ARRY shares dropped -0.32 points or -1.45 percent on Friday to $21.82 with a light trade volume of 2.903 million shares. After opening the session at $21.8, the shares went as high as $22.09 and as low as $21.37, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $4.83 billion and now has 221.41 million shares outstanding. Array BioPharma Inc. (ARRY) stock has gained 2.49 percent of market value in 21 trading days.

Analysts at Leerink Partners, assumed coverage of Array BioPharma Inc. (NASDAQ:ARRY) with Outperform recommendation, according to their opinion released on January 17. Analysts at Stifel are sticking to their Buy recommendation. However, on February 07, they lifted target price for these shares to $23 from $20. Analysts at Stifel, made their first call for the stock with a Buy rating, according to a research note that dated back to February 07.

ARRY stock has a trailing 3-year beta of 1.5, 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 -$0.53 a share in the trailing twelve months. The stock’s value has surged 53.12 percent year to date (YTD) against a rise of 18.59 percent in 12 month’s time. The company’s shares still trade -8.24 percent away from its 1-year high of $23.78 and 73.73 percent up from 52-week low of $12.56. The average consensus rating on the company is 1.6, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.

Shares of Array BioPharma Inc. (ARRY) are trading at a P/E ratio of 0 times earnings reported for the past 12 months. The industry ARRY operates in has an average P/E of 85.92. Its P/E ratio went as low as 109.04X and as high as 109.04 over the 5-year span. Further, it is sporting a 20.02 on the Price-to-Sales ratio. Compare this with the industry average P/S of 44.01. 85.5 percent is the gross profit margin for Array BioPharma Inc. and operating margin sits at -42.8 percent. Along with this, the net profit margin is -46.2 percent.