Pan American Silver Corp. (NASDAQ: PAAS) shares rose in early trading today on 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 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%.
Canaccord Genuity analysts reiterated its Hold rating on Pan American Silver Corp. (NASDAQ: PAAS) in a note to investors, making it one of the more closely watched stocks on Wall Street. With a rating of Hold on the stock, Pan American Silver Corp. has a 52-week high of $21.59. A number of other analysts have issued reports on the stock in recent days, and the company has secured a consensus one-year price target of $20.10, above the opening price of $17.02. Stock prices often shift to the upside on recommendations and new price targets of professional analysts.
Yesterday Pan American Silver Corp. (NASDAQ: PAAS) shares last traded at $16.93, which represents an increase of $0.07 over the previous closing price. Opening at $17.02, they ranged from $16.84 and $17.16 throughout the day.
Pan American Silver Corp. (NASDAQ: PAAS) now has a market cap of 2.58B.
Pan American Silver Corp. (NASDAQ: PAAS) Average Daily Trading Volume
192,177 shares crossed the trading desk yesterday, 51 percent below normal, out of a total float 148,831,000. lower than normal. Look for trading volume to pick up in the coming days as investors often use swings 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, conversely, 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 is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Professional investors such as these have substantial teams of analysts that investigate thousands of stocks, so it is good validation to see them taking a postion in a stock you are considering.
Pan American Silver Corp. (NASDAQ: PAAS) 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 tracking the activity of these professional investors—and the moving averages they affect—it allows for traders to make more effective decisions on trades.
Trades for Pan American Silver Corp. (NASDAQ: PAAS) have ranged from $5.38 – 21.59, and the stock now has a 50-day MA of $16.20 and 200-day MA of $17.27. Today’s last price is 21.58%% lower than the 52 week high of $21.59.
Earnings growth is a crucial factor to consider when investing in stocks and investors look for companies that have been successful at growing their earnings at least 25% or more for the past 3 years.
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