Brooks Automation, Inc. (NASDAQ: BRKS) shares rose in value in early trading today on 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 edged lower Monday, with major indexes retreating from record levels.
The Dow Jones Industrial Average DJIA, -0.31% fell 48 points, or 0.2%, to 19,916, while the S&P 500 index SPX, -0.29% lost 5 points to 2,272, a drop of 0.2%. The Nasdaq Composite Index COMP, -0.03% rose 4 points to 5,529, a gain of about 0.1%.
Analysts at Credit Suisse Group upgraded shares of Brooks Automation, Inc. (NASDAQ: BRKS) from Underperform to Neutral today. With a rating of Neutral on the shares, Brooks Automation, Inc. has a 52-week high of $17.98. The one-year price target of $17.83 is above the opening price of $17.20, causing a number of other analysts to report on the company recently. Typically, after analysts publish an upgrade report on a stock, they will subsequently issue sporadic updates, such as a price target change.
Yesterday Brooks Automation, Inc. (NASDAQ: BRKS) shares last traded at $17.10, which represents a jump of $0.24 over the previous closing price. Opening at $17.20, they ranged from $17.06 and $17.42 throughout the day.
Brooks Automation, Inc. (NASDAQ: BRKS) now has a market cap of 1.13B.
Brooks Automation, Inc. (NASDAQ: BRKS) Average Daily Trading Volume
87,429 shares traded hands yesterday, 99 percent below normal, out of a total float 64,433,000. lower than normal. Look for trading volume to pick up in the coming days as momentum traders often use increases in trading volume to identify heavy volume accumulation or distribution by institutional investors.
While increased trading for short periods will not mean much will not mean much, however, a trend of heavy trading volume on the buy side over a period of days or weeks sends a positive signal to market traders that institutions may be moving in, so institutional sponsorship is very important.
Institutional sponsorship just refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these retain teams of analysts that investigate thousands of stocks, so it is good validation to see them buying a stock you’re considering.
Brooks Automation, Inc. (NASDAQ: BRKS) 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 traders to make those trends work in their favor and increase the number of winning trades.
Trades for Brooks Automation, Inc. (NASDAQ: BRKS) have ranged from $8.33 – 17.98, and the stock now has a 50-day MA of $16.68 and 200-day MA of $13.74. Today’s last price is 4.89%% under the 52 week high of $17.98.
Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors seek companies that have grown their earnings at least 25% or more for a 3 year period.
DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of the website. Readers should not consider statements made by the author as formal recommendations and should consult their financial adviser before making any investment decisions. To read our full disclosure, please see our terms and conditions page.