Old Second Bancorp Inc. (NASDAQ: OSBC) 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 Old Second Bancorp Inc. (NASDAQ: OSBC) from Hold to Buy today. With a rating of Buy on the shares, Old Second Bancorp Inc. has a 52-week high of $11.64. The one-year price target of $10.33 is a decrease compared to the opening price of $11.15, causing a number of other analysts to report on the stock in recent days. Typically, after analysts assign an upgrade report on a stock, they will subsequently issue recurring revisions, usually followed by a price target change.
Old Second Bancorp Inc. (NASDAQ: OSBC) shares last traded at $11.48, which represents a spike of $0.08 or 0.66% compared to the previous closing price. Opening at $11.15, they varied from $11.15 and $11.50 throughout the day.
Old Second Bancorp Inc. (NASDAQ: OSBC) now has a market cap of 339.13M.
Old Second Bancorp Inc. (NASDAQ: OSBC) Average Daily Trading Volume
12,575 shares traded hands yesterday, below the norm, out of a total float 25,809,000. Investors often use swings in trading volume to determine substantial volume growth or distribution by institutional investors, so trading volume is likely to increase in the next few days.
As with all possible breakouts, investors look for volume to be at least 40%-50% greater than normal on the breakout to indicate that fund managers and other professional investors are jumping in.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors have teams of analysts that investigate thousands of stocks. So watching their interests is a good way to make sure you are buying the right stocks.
Old Second Bancorp Inc. (NASDAQ: OSBC) 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 successful trades.
With that in mind, Old Second Bancorp Inc. (NASDAQ: OSBC) now has a 50-day MA of $9.77 and 200-day MA of $8.17. It has traded in a 52-week range between $6.22 – 11.638 and today’s last price is 1.40%% lower than the 52 week high of $11.64.
Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors watch for companies that have raised their earnings by at least 25% over a 3 year period.
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