analysis of statistics

Medicines Co (NASDAQ:MDCO) shares traded on 1.22% above secure line and closed at $19.95. The stock exchanged hands 1.18 Million shares versus average trading capacity of 1.35 Million shares. It has a market cap of $1.47 Billion.

Wall Street analysts are predicting that Medicines Co (NASDAQ:MDCO) will report earnings per share of $-0.61 in their quarterly report. For the current quarter Medicines Co (NASDAQ:MDCO) has high EPS estimates of $-0.45 in contradiction of low EPS estimates of $-0.84. However a year ago for the same quarter the company has reported $-1.58 EPS. Average estimation for the current quarter has been provided by 7 analysts.

Investors as well as the sell-side will be paying close attention to how the actual numbers compare with the estimates. Earnings surprises can have a huge impact on a company’s stock price. Several studies suggest that positive earnings surprises not only lead to an immediate hike in a stock’s price, but also to a gradual increase over time. Hence, it’s not surprising that some companies are known for routinely beating earning projections. A negative earnings surprise will usually result in a decline in share price.

A large surprise factor in either direction typically can lead to a significant swing in the stock price in the hours and days after the report. Previously Medicines Co (NASDAQ:MDCO) reported $-0.7 earnings per share (EPS) for the quarter, missing the consensus estimate of $-0.55 by $-0.15 with surprise factor of -27.3%.

Taking a broader look at the analyst consensus, according to 13 analysts Medicines Co (NASDAQ:MDCO)’s price will reach at $45.85 during 52 weeks. Its minimum price target estimates has been figured out at $25 while the maximum price target forecast is established at $85.

On the other hand Medicines Co (NASDAQ:MDCO) has Relative Strength Index (RSI 14) of 50.9 along with Average True Range (ATR 14) of 1.26. Where the relative strength index (RSI) is a technical momentum indicator that compares the magnitude of recent gains to recent losses in an attempt to determine excess buying & selling conditions of an asset, it is one of the most popular technical indicators, computed on the basis of the speed and direction of a stock’s price movement. The RSI value will always move between 0 and 100; the value will be 0 if the stock falls on all 14 days, and 100, if the price moves up on all the days) as suggested by J Welles Wilder. In terms of market analysis and trading signals, RSI moving above the horizontal 30 reference level is viewed as a bullish indicator, while the RSI moving below the horizontal 70 reference level is seen to be a bearish indicator. The level of 50 represents neutral market momentum and corresponds with the center line in other oscillators such as MACD (Moving Average Convergence/Divergence). The average true range (ATR) is a measure of volatility introduced by Welles Wilder.

Consequently Medicines Co (NASDAQ:MDCO)’s weekly and monthly volatility is 5.32%, 7.12% respectively.