LightPath Technologies, Inc. (NASDAQ: LPTH) shares rose in early trading today on lower 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 Dougherty & Co initiated coverage on LightPath Technologies, Inc. (NASDAQ: LPTH) stock, starting the company at Buy. With a rating of Buy on the stock, the company has a 52-week high of $3.79. The one-year price target of $2.55 is higher than the opening price of $1.67, that has caused a fair amount of other analysts to issue statements on the stock recently. Price changes targets are not unheard of as analysts and brokerage firms will issue periodic updates after beginning or initiating coverage.
Shares of LightPath Technologies, Inc. (NASDAQ: LPTH) opened at $1.67 yesterday and traded in a range between, $1.65 and $1.72, and last traded at $1.69, which is a spike of $0.05 over the previous closing price.
LightPath Technologies, Inc. (NASDAQ: LPTH) now has a market cap of 26.46M.
LightPath Technologies, Inc. (NASDAQ: LPTH) Average Daily Trading Volume
53,147 shares crossed the trading desk yesterday, 11 percent below the norm, out of a total float 12,327,000. lower than normal. Look for trading volume to pick up in the coming days as swing traders often use increases in trading volume to identify heavy volume accumulation or distribution by institutional investors.
However, a single day of heavy buy side trading is not enough to assert a trend. As such, market traders will continue to watch for institutional sponsorship as a signal that financial institutions are moving forward.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors retain substantial teams of analysts that research thousands of stocks, so it is good validation to see them buying a stock you’re researching.
LightPath Technologies, Inc. (NASDAQ: LPTH) 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 LightPath Technologies, Inc. (NASDAQ: LPTH) have ranged from $1.21 – 3.7900, and the stock now has a 50-day MA of $1.43 and 200-day MA of $1.68. Today’s last price is 55.41%% lower than the 52 week high of $3.79.
Earnings growth is a crucial factor to research when investing in stocks and investors identify companies that have increased their earnings at least 25% or more over a 3 year period.
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