Adverum Biotechnologies, Inc. ADVM shares are trading higher Monday after the company announced that it has agreed to sell approximately 106.25 million shares in a $127.5 million private placement.
The Deal:
Adverum will be selling the shares at a price of $1.20 each, representing a premium of about 20% to its stock’s 30-day volume-weighted average price. The financing is anticipated to close on Feb. 8.
The company expects the gross proceeds from the private placement to be around $127.5 million, before deducting any offering related expenses. These funds are expected to be adequate to support the current operating plan through late 2025.
In addition, on Feb. 8, Adverum will host a webcast to review preliminary efficacy and safety data from its ongoing LUNA Phase 2 study of ixoberogene soroparvovec for the treatment of wet age-related macular degeneration.
Adverum shares are surging on heavy trading volume following the announcement of the $127.5 million private placement. Based on data from Benzinga Pro, more than 15.4 million shares have already been traded in the session, compared to the stock’s 100-day average volume of less than 492,000 shares.
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ADVM Stock Prediction 2024
Equity research analysts on and off Wall Street typically employ earnings growth and fundamental research as a form of valuation and forecasting. However, many traders turn to technical analysis as a way to form predictive models for share price trajectory.
Some investors rely on trends to help forecast where they believe a stock could trade at a certain point in the future. Looking at Adverum Biotechnologies, 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 Adverum Biotechnologies, the 200-day moving average sits at $1.25, according to Benzinga Pro, which is below the current price of $1.88. For more on charts and trend lines, refer to a description on Benzinga Pro.
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.
ADVM Price Action: According to Benzinga Pro, Adverum Biotechnologies shares are up 23% at $1.75 at the time of publication.
Image: Gerd Altmann from Pixabay
