Is This Radius Health, Inc. (RDUS)’s Unjustifiable Rally?

The stock of Radius Health, Inc. (NASDAQ:RDUS) has been Upgraded to Buy from Neutral by Citigroup in its latest research note that was published on August 29. RDUS was given a price target of $40 by Citigroup, with other Wall Street analysts also giving their reports regarding the stock. Citigroup, analysts launched coverage of RDUS stock with a Neutral rating, according to their flash note to investors on May 30. Analysts at Goldman issued an upgrade fromNeutral to Buy for the stock, in a research note that dated back to May 29.

Radius Health, Inc., which has current market capitalization of above $1 Billion, published its last quarter earnings on June 30, 2019.

RDUS surged by $1.34 during the normal trading session on Thursday and reaching a high of $29.44 during the day while it closed the day at $28.51. The Radius stock had a low trading volume of 1.30 million shares on that day, which is low compared to the average daily volume of 476.96M shares. RDUS has also gained 2.74% of its value over the past 7 days. However, the stock has surged by 30.90% in the 3 months of the year. Over the past six months meanwhile, it has gained 52.62% while it has added 72.89% year-on date. Let us now take a look at the stock’s potential support and resistance levels. The publicly traded company was seen to have slipped by -3.16% from its 3 months high price. However, taking another look at RDUS will indicate that it is trading +48.18% away from its 90-day low. Looking at the bigger picture, the Radius Health, Inc. stock has dropped by -3.16% from its 52-week high while it has surged by +122.56% from its 52-week low price.

On July 01, 2019 Rosenberg Anthony, Director sold 1584 shares of the company. The average price for that transaction was $24.6 per share, which meant that Rosenberg Anthony earned $38966.4 selling the stocks. The sale was made public, with the document of the transaction filed with the SEC. Another insider trading occurred, with Sr. VP of Sales and Marketing, Kelly Joseph Francis purchasing 2500 shares of this stock on June 07, 2019. The average purchasing price for the stock was $21.81 per share, with the purchased stock accruing $54525. Following this transaction, the Sr. VP of Sales and Marketing Kelly Joseph Francis now holds 5000 shares of the company, which is worth around $140500.

Radius has around 67 Billion cash on their books at the moment. This figure will have to be compared and looked into, with their current liabilities standing at $52 Billion. The Radius stock is bringing in revenue of over 12 months, which is roughly 41 Billion. Despite all that, Radius Health, Inc. is seeing things progressing very much as their y-o-y quarterly revenue surged by 81.37%.

Looking at the stock’s Technical analysis information over the past 50 days shows that its Raw Stochastic average stood at 90.88%. This figure is better than the company’s 20-day Raw Stochastic average which currently stands at 86.56%. Over the past 20 days, Radius’s Stochastic %K stood at 81.78% while its Stochastic %D was revealed to be 79.58%.