Allot Communications Ltd. (NASDAQ: ALLT) shares rose on Wednesday Jan 4 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock and reiterated thier respective ratings.
Meanwhile, U.S. stocks opened higher on Wednesday as banking stocks led the Dow Jones Industrial Average closer to the 20,000 milestone.
The Dow DJIA, +0.18% gained 25 points, or 0.1%, to 19,906. The S&P 500 SPX, +0.36% climbed four points, or 0.2%, to 2,262. The Nasdaq Composite Index COMP, +0.50% added 13 points, or 0.3%, to 5,447.
Analysts at Jefferies Group reiterated a Hold rating on shares of Allot Communications Ltd. (NASDAQ: ALLT) in a reserach note to investors, making it one of the more closely watched stocks on Wall Street. Jefferies Group currently has a rating of Hold on the shares. A number of other analysts have spoken on the company in recent days, and the company has earned a consensus one-year price target of $5.13, a decrease compared to the opening price of $5.25. Allot Communications Ltd. stock has a 52-week high of $5.66. Typically, after analysts assign a “reiterated rating” report on a stock, they will subsequently issue recurring revisions, such as a price target change.
Allot Communications Ltd. (NASDAQ: ALLT) shares last traded at $5.28, which is an increase of $0.13 or 0.03 from the previous closing price. Opening at $5.25, they ranged from $5.23 and $5.33 throughout the day.
Allot Communications Ltd. (NASDAQ: ALLT) currently has a market cap of 174.30M.
Allot Communications Ltd. (NASDAQ: ALLT) Average Daily Trading Volume
The stock’s average daily volume is 82,302 shares out of a total float 28,060,000 and some 50,683 shares traded hands yesterday, below the norm. lower than normal. Look for trading volume to pick up in the coming days as swing traders often use swings in trading volume to identify heavy volume accumulation or distribution by institutional investors.
However, a single day of heavy 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.
Institutional investors such as these have teams of analysts researching thousands of stocks, so it is good validation to see them buying a stock you’re researching.
Allot Communications Ltd. (NASDAQ: ALLT) 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.
Trades for Allot Communications Ltd. (NASDAQ: ALLT) have ranged from $4.24 – 5.66, and the stock now has a 50-day MA of $4.84 and 200-day MA of $5.03. Today’s last price is 0.07% below the 52 week high of $5.66.
Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors seek companies that have been successful at growing their earnings by at least 25% for a 3 year period.
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