Mitek Systems Inc. (NASDAQ: MITK) shares rose on 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 downgraded 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.
Shares of Mitek Systems Inc. (NASDAQ: MITK) were downgraded by analysts at Zacks Investment Research in a note to their investors today. With a rating of Sell on the stock, the company has a 52-week high of $9.49. As a means of comparison, a number of other analysts have commented on the stock in recent days, and Mitek Systems Inc. has earned a consensus one-year price target of $9.50, above the opening price of $6.20. Important and integral digressions in the company’s procedures, future direction or industry can cause downgrades as the analysts believe that the future prospects for the security have weakened from the initial recommendation.
Mitek Systems Inc. (NASDAQ: MITK) shares last traded at $6.35, a jump of $0.10 or 1.60% over the previous closing price. Opening at $6.20, they varied from $6.20 and $6.35 throughout the day.
Mitek Systems Inc. (NASDAQ: MITK) currently has a market cap of 210.06M.
Mitek Systems Inc. (NASDAQ: MITK) Average Daily Trading Volume
10,001 shares traded hands yesterday, below normal, out of a total float 31,657,000. Investors often use swings in trading volume to identify large volume growth or circulation by institutional investors, so look for trading volume to pick up in the coming days.
However, a single day of high volume buy side trading is not enough to determine a trend. So market traders will continue to watch for institutional sponsorship as an indicator that financial institutions are moving forward.
Institutional sponsorship just refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors retain teams of analysts that research thousands of stocks, so it is good validation to see them buying a stock you’re researching.
Mitek Systems Inc. (NASDAQ: MITK) 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 can make more impactful choices on trades when they follow the trading habits of professional investors.
With that in mind, Mitek Systems Inc. (NASDAQ: MITK) now has a 50-day MA of $6.05 and 200-day MA of $7.20. It has traded in a 52-week range between $3.95 – 9.49 and today’s last price is 33.09%% lower than the 52 week high of $9.49.
Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors identify companies that have been successful at growing their earnings by at least 25% over a 3 year period.
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