Shaw Communications Inc. (NYSE: SJR) shares rose in value in early trading today on lighter 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 Royal Bank Of Canada upgraded shares of Shaw Communications Inc. (NYSE: SJR) from Sector Perform to Outperform today. With a rating of Outperform on the stock, Shaw Communications Inc. has a 52-week high of $20.93. The one-year price target of $20.08 is less than the opening price of $20.92, resulting a fair amount of other analysts to comment on the stock recently. Stock prices often move to the upside on recommendations and new price targets of professional analysts.
Yesterday Shaw Communications Inc. (NYSE: SJR) shares last traded at $20.66, which represents a jump of $0.05 over the previous closing price. Opening at $20.92, they ranged from $20.61 and $20.93 throughout the day.
Shaw Communications Inc. (NYSE: SJR) now has a market cap of 10.05B.
Shaw Communications Inc. (NYSE: SJR) Average Daily Trading Volume
The stock’s average daily volume is 362,427 shares out of a total float 424,396,000 and some 149,157 shares crossed the trading desk yesterday, 81 percent below the average. lower than normal. Look for trading volume to pick up in the coming days as momentum traders often use swings in trading volume to identify heavy volume accumulation or distribution by institutional investors.
While increased trading for one day 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.
Professional investors such as these retain 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.
Shaw Communications Inc. (NYSE: SJR) 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 identifying trends, moving averages allow traders to make those trends work in their favor and increase the number of winning trades.
Trades for Shaw Communications Inc. (NYSE: SJR) have ranged from $15.66 – 20.93, and the stock now has a 50-day MA of $20.00 and 200-day MA of $19.88. Today’s last price is 1.29%% below the 52 week high of $20.93.
Earnings growth is a crucial factor to look at when buying stocks and investors seek companies that have raised their earnings at least 25% or more for a 3 year period.
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