Mercer International Inc. (NASDAQ: MERC) shares rose in value Thursday December 29 with slower 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 Mercer International Inc. (NASDAQ: MERC) from Sell to Hold today. Zacks Investment Research currently has a rating of Hold on the stock. The one-year price target of $11.42 is above the opening price of $10.45, causing a fair amount of other analysts to report on the stock recently. Looking back over the last 52 weeks, Mercer International Inc. stock has a high of $10.75. Usually, after analysts publish an upgrade report on a stock, they will subsequently issue recurring revisions, often followed by a price target change.
Mercer International Inc. (NASDAQ: MERC) shares last traded at $10.50, which represents a spike of $0.10 or 0.96% compared to the previous closing price. Opening at $10.45, they varied from $10.35 and $10.55 throughout the day.
Mercer International Inc. (NASDAQ: MERC) currently has a market cap of 678.88M.
Mercer International Inc. (NASDAQ: MERC) Average Daily Trading Volume
2,408 shares traded hands yesterday, below the norm, out of a total float 31,477,000. Investors often use upticks in trading volume to pinpoint heavy volume accumulation or distribution by institutional investors, so look for trading volume to pick up in the coming days.
However, one day of high volume buy side trading is not enough to assert a trend. As such, market traders will continue to watch for institutional sponsorship as a signal that financial institutions are moving forward.
Institutional sponsorship simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors retain substantial teams of analysts that investigate thousands of stocks. Thus, watching their interests is a good way to make sure you are buying the right stocks.
Mercer International Inc. (NASDAQ: MERC) 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.
Traders are able to make make more impactful decisions on trades when they follow the activity of professional investors.
Trades for Mercer International Inc. (NASDAQ: MERC) have ranged from $5.95 – 10.75, and the stock now has a 50-day MA of $9.74 and 200-day MA of $8.59. Today’s last price is 2.33%% lower than the 52 week high of $10.75.
Earnings growth is an important factor to look at when investing in stocks and investors seek companies that have raised their earnings by at least 25% over 3 consecutive years.
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