• Indivior (INDV) is up 90% since April and has consistently hit new highs, driven by optimism for Sublocade.
• INDV stock set its latest 52-week high in morning trading on Aug. 8.
• Technical indicators are overwhelmingly bullish. Indivior has a 100% “Buy” rating from Barchart.
• Despite the current momentum, INDV is volatile and speculative. I recommend strict risk management and stop-loss strategies for any potential investment.

Today’s Featured Stock

Valued at $3.03 billion, Indivior (INDV) is a specialty pharmaceutical company. It is engaged in discovering and developing medications and treatment for alcohol addiction, opioid overdose, cocaine intoxication, and co-occurring conditions, such as schizophrenia. 

Its future seems to be based on analysts’ love of Sublocade, which is an extended-release injection of buprenorphine used for the treatment of moderate to severe opioid use disorder. Sublocade works by steadily releasing buprenorphine into the bloodstream, helping to reduce cravings and withdrawal symptoms associated with opioid dependence. 

What I’m Watching

I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals; superior current momentum in both strength and direction; and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. INDV checks those boxes. Since the Trend Seeker signaled a buy on April 25, the stock has gained 92.7%.

INDV Price. vs Daily Moving Averages:

Barchart Technical Indicators for Indivior

Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.

Indivior shares hit a new 52-week high on Aug. 8, touching $22.36 in morning trading.

• Indivior has a Weighted Alpha of +128.91.
• INDV has an 100% “Buy” opinion from Barchart.
• The stock has gained 69.29% over the past year.
• INDV has its Trend Seeker “Buy” signal intact.
• Indivior is trading above its 20-, 50-, and 100-day moving averages.
• The stock made 20 new highs and gained 46.08% in the last month.
• Relative Strength Index (RSI) is at 90%.
• There’s a technical support level around $21.72.

Don’t Forget the Fundamentals

• $3.03 billion market capitalization.
• 12.36x trailing price-earnings ratio.
• Revenue is projected to decline 9.09% this year and another 1.16% next year.
• Earnings are estimated to increase only 1.10% this year and an additional 11.48% next year.

Analyst and Investor Sentiment on Indivior

I don’t buy stocks because everyone else is buying, but I do realize that if major firms and investors are dumping a stock, it’s hard to make money swimming against the tide.

It looks like Wall Street analysts are bullish on INDV, and so is Morningstar.

• The Wall Street analysts tracked by Barchart have issued 7 “Strong Buy” and 1 “Moderate Buy” opinion on the stock.
• Their price targets are between $20-$30 with a consensus of $25.83.
• Morningstar thinks the stock is undervalued by 23% with a fair value of $28.77.
• Only 958 investors monitor the stock on Seeking Alpha, which rates the stock a “Hold.”

The Bottom Line on Indivior

INDV currently has momentum and is hitting new highs. Analysts seem to think a turnaround may be in its future.

I caution that INDV is volatile and even speculative in the current environment, which means investors should use strict risk management and stop-loss strategies.

Today’s Chart of the Day was written by Jim Van Meerten. Read previous editions of the daily newsletter here.

Additional disclosure: The Barchart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.