DSP Group, Inc. (NASDAQ: DSPG) shares traded mostly even 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.
U.S. stocks flipped between small losses and gains early Tuesday morning as investors maintained a cautious stance following a sharp postelection rally.
The S&P 500 index SPX, -0.04% was off by about 1 point, or less than 0.1%, at 2,267, with seven of the 11 main sectors trading lower. The Dow Jones Industrial Average DJIA, -0.13% was off 33 points, or 0.2%, to 19,853.
Meanwhile, the Nasdaq Composite Index COMP, +0.05% traded in record territory, after closing at an all-time high for the second session in a row on Monday.
Analysts at Canaccord Genuity reiterated a Buy rating on shares of DSP Group, Inc. (NASDAQ: DSPG) in a reserach note to investors, making it one of the more actively watched stocks on Wall Street. With a rating of Buy on the shares, the company has a 52-week high of $13.15. The one-year price target of $13.58 is above the opening price of $12.50, that has caused a fair amount of other analysts to report on the stock recently. Stock prices often move to the upside on recommendations and new price targets of professional brokerage firms.
Shares of DSP Group, Inc. (NASDAQ: DSPG) opened at $12.50 yesterday trading between $12.45 and $12.50, and last traded at $12.45.
DSP Group, Inc. (NASDAQ: DSPG) now has a market cap of 269.19M.
DSP Group, Inc. (NASDAQ: DSPG) Average Daily Trading Volume
4,713 shares crossed the trading desk yesterday, 39 percent below normal, out of a total float 17,779,000. 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, 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 simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Professional investors such as these have teams of analysts that investigate thousands of stocks, so it is good corroboration to see them buying a stock you’re considering.
DSP Group, Inc. (NASDAQ: DSPG) 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 successful trades.
With that in mind, DSP Group, Inc. (NASDAQ: DSPG) now has a 50-day MA of $12.13 and 200-day MA of $11.27. It has traded in a 52-week range between $7.89 – 13.15 and today’s last price is 5.32%% lower than the 52 week high of $13.15.
Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors watch for companies that have grown their earnings at least 25% or more for 3 consecutive years.
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