Heritage Commerce Corp (NASDAQ: HTBK) shares rose in early trading today on lighter trade volume than normal after more analysts initiated coverage on the stock.
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 Brean Capital initiated coverage on Heritage Commerce Corp (NASDAQ: HTBK) stock, rating the company at Buy. With a rating of Buy on the stock, the company has a 52-week high of $14.55. The one-year price target of $14.13 is above the opening price of $13.84, resulting a number of other analysts to report on the company recently. Changes in price targets are not unheard of as analysts and brokerage firms will publish periodic updates after initiating coverage,.
Yesterday Heritage Commerce Corp (NASDAQ: HTBK) shares last traded at $13.88, which is a spike of $0.14 from the previous closing price. Opening at $13.84, they fluctuated from $13.77 and $13.96 throughout the day.
Heritage Commerce Corp (NASDAQ: HTBK) currently has a market cap of 526.22M.
Heritage Commerce Corp (NASDAQ: HTBK) Average Daily Trading Volume
The stock’s average daily volume is 269,194 shares out of a total float 35,685,000 and some 12,590 shares traded hands yesterday, 44 percent lower than normal. 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 one day 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 teams of analysts that research thousands of stocks, so it is good confirmation to see them buying a stock you’re considering.
Heritage Commerce Corp (NASDAQ: HTBK) 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 investors to make those trends work in their favor and increase the number of winning trades.
Trades for Heritage Commerce Corp (NASDAQ: HTBK) have ranged from $8.84 – 14.550, and the stock now has a 50-day MA of $13.51 and 200-day MA of $11.60. Today’s last price is 4.64%% below the 52 week high of $14.55.
Earnings growth is a critical factor to look at when investing in stocks and investors look for companies that have been successful at growing their earnings by at least 25% over 3 consecutive years.
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