By wgarcia — August 19, 2016 From Press Telegraph

The stock of Achaogen Inc (NASDAQ:AKAO) gapped down by $0.02 today and has $3.34 target or 11.00% below today’s $3.75 share price. The 6 months technical chart setup indicates high risk for the $100.31 million company. The gap down was reported on Aug, 20 by Barchart.com. If the $3.34 price target is reached, the company will be worth $11.03 million less. Gaps down are helpful for identifying a resistance level and to could also be used as a tradeable event. If traders are short the stock and it experiece gap down, then its usually advisable to hold the short for a bigger down move. Back-tests of such patterns show that two-thirds of the these patterns the stock performance worsens after the gap. The area gaps close 91% of the time, the breakaway gaps 1%, the continuation gaps 9% and the exhaustion gaps 64%. The stock decreased 2.09% or $0.08 on August 19, hitting $3.75. About 48,798 shares traded hands. Achaogen Inc (NASDAQ:AKAO) has declined 11.97% since January 15, 2016 and is downtrending. It has underperformed by 25.77% the S&P500.

Analysts await Achaogen Inc (NASDAQ:AKAO) to report earnings on November, 3. They expect $-0.43 EPS, up 10.42% or $0.05 from last year’s $-0.48 per share. After $-0.81 actual EPS reported by Achaogen Inc for the previous quarter, Wall Street now forecasts -46.91% EPS growth.

Out of 3 analysts covering Achaogen (NASDAQ:AKAO), 1 rate it a “Buy”, 0 “Sell”, while 2 “Hold”. This means 33% are positive. Achaogen has been the topic of 3 analyst reports since March 16, 2016 according to StockzIntelligence Inc.

According to Zacks Investment Research, “Achaogen, Inc. is a clinical-stage biopharmaceutical company. It is focused on the discovery, development, and commercialization of novel antibacterials to treat multi-drug resistant, or MDR, gram-negative infections. The Company is developing plazomicin, its lead product candidate, for the treatment of serious bacterial infections due to MDR enterobacteriaceae, including carbapenem-resistant enterobacteriaceae. Achaogen, Inc. is headquartered in South San Francisco, California.”

The institutional sentiment increased to 1.69 in Q1 2016. Its up 0.40, from 1.29 in 2015Q4. The ratio improved, as 5 funds sold all Achaogen Inc shares owned while 8 reduced positions. 9 funds bought stakes while 13 increased positions. They now own 6.86 million shares or 15.74% less from 8.14 million shares in 2015Q4.

Opaleye Management Inc. holds 0.44% of its portfolio in Achaogen Inc for 255,000 shares. Murphy Michael R owns 318,619 shares or 0.31% of their US portfolio. Moreover, Wellcome Trust Ltd (The) As Trustee Of The Wellcome Trust has 0.07% invested in the company for 1.13 million shares. The Cayman Islands-based Cqs Cayman Lp has invested 0.03% in the stock. Spark Investment Management Llc, a New York-based fund reported 86,000 shares.

For more on this story go to: http://presstelegraph.com/2016/08/19/achaogen-incs-big-gap-down-today-points-to-more-stock-risks/