Leucadia National Corporation (NYSE: LUK) 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.
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 Zacks Investment Research upgraded shares of Leucadia National Corporation (NYSE: LUK) from Hold to Strong-Buy today. With a rating of Strong-Buy on the shares, the company has a 52-week high of $24.17. A number of other analysts have commented on the stock recently, and the company has secured a consensus one-year price target of $30.00, above the opening price of $23.25, a difference of 12.83 percent. Stock prices often trend to the upside on recommendations and new price targets of professional brokerage firms.
Yesterday Leucadia National Corporation (NYSE: LUK) shares last traded at $23.38, an increase of $0.16 from the previous closing price. Opening at $23.25, they fluctuated from $23.23 and $23.38 throughout the day.
Leucadia National Corporation (NYSE: LUK) now has a market cap of 8.42B.
Leucadia National Corporation (NYSE: LUK) Average Daily Trading Volume
The stock’s average daily volume is 1,745,620 shares out of a total float 316,678,000 and some 49,897 shares crossed the trading desk yesterday, 82 percent lower than the norm. lower than normal. Look for trading volume to pick up in the coming days as momentum traders often use upticks 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.
These professional investors have teams of analysts researching thousands of stocks, so it is good validation to see them taking a postion in a stock you’re researching.
Leucadia National Corporation (NYSE: LUK) 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 successful trades.
With that in mind, Leucadia National Corporation (NYSE: LUK) now has a 50-day MA of $22.97 and 200-day MA of $19.70. It has traded in a 52-week range between $14.27 – 24.17 and today’s last price is 3.27%% lower than the 52 week high of $24.17.
Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors seek companies that have increased 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.