LSI Industries Inc. (LYTS) Shares Tick Up after Upgrade at Zacks Investment Research

LSI Industries Inc. (NASDAQ: LYTS) shares rose in value Thursday December 29 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.

Meanwhile, U.S. stocks were little changed in early trade Thursday. The S&P 500 SPX, +0.04% rose 0.1% to 2,252, while the Dow DJIA, +0.04% advanced 16 points to 19,850. The Nasdaq Composite COMP, -0.04% was virtually flat at 5,439.

Analysts at Zacks Investment Research upgraded shares of LSI Industries Inc. (NASDAQ: LYTS) from Sell to Hold today. With a rating of Hold on the stock, the company has a 52-week high of $13.45. As a means of comparison, a number of other analysts have issued reports on the company in recent days, and LSI Industries Inc. has secured a consensus one-year price target of $12.00, higher than the opening price of $9.67. Stock prices sometimes get a jump to the upside when analysts upgrade a stock.

Shares of LSI Industries Inc. (NASDAQ: LYTS) opened at $9.67 on Tuesday and has traded in a range between, $9.62 and $9.80, and last traded at $9.62, which represents a jump of $0.01 or 0.10% from the previous closing price.

LSI Industries Inc. (NASDAQ: LYTS) currently has a market cap of 240.63M.

LSI Industries Inc. (NASDAQ: LYTS) Average Daily Trading Volume

1,554 shares traded hands yesterday, below the norm, out of a total float 24,500,000. Swing traders often use increases in trading volume to determine substantial volume accumulation or distribution by institutional investors, so look for trading volume to pick up in the coming days.

While higher trading for one day will not mean much, conversely, a trend of heavy trading volume on the buy side over a period of days or weeks delivers a positive cue to market traders that institutions may be moving in, so institutional sponsorship is very important.

Institutional sponsorship commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.

These instituitional investors retain substantial teams of analysts researching thousands of stocks. So watching their interests is a good way to make sure you are buying the right stocks.

LSI Industries Inc. (NASDAQ: LYTS) Moving Averages

A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.

This is because the average acts like a floor (support), so the price bounces up off of it.

In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.

By spotting trends, moving averages allow investors to make those trends work in their favor and increase the number of winning trades.

With that in mind, LSI Industries Inc. (NASDAQ: LYTS) now has a 50-day MA of $9.82 and 200-day MA of $10.35. It has traded in a 52-week range between $8.12 – 13.45 and today’s last price is 28.48%% lower than the 52 week high of $13.45.

Earnings growth is an important factor to research when buying stocks and investors watch for companies that have grown their earnings at least 25% or more for 3 consecutive years.

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