Sterling Construction Company Inc (NASDAQ: STRL) 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 Canaccord Genuity initiated coverage on Sterling Construction Company Inc (NASDAQ: STRL) stock, rating the company at Buy. With a rating of Buy on the shares, Sterling Construction Company Inc has a 52-week high of $9.38. The one-year price target of $8.50 is above the opening price of $8.10, that has caused a fair amount of other analysts to comment on the stock in recent days. Analysts and brokerage firms will subsequently re periodic updates after initiating coverage,. Changes in price targets are not unheard of.
Shares of Sterling Construction Company Inc (NASDAQ: STRL) opened at $8.10 yesterday and traded in a range between, $7.99 and $8.18, and last traded at $8.15, which is an increase of $0.17 from the previous closing price.
Sterling Construction Company Inc (NASDAQ: STRL) now has a market cap of 203.77M.
Sterling Construction Company Inc (NASDAQ: STRL) Average Daily Trading Volume
The stock’s average daily volume is 192,565 shares out of a total float 23,539,000 and some 16,359 shares crossed the trading desk yesterday, 0 percent lower than the norm. 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.
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 corroboration to see them buying a stock you’re researching.
Sterling Construction Company Inc (NASDAQ: STRL) 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 Sterling Construction Company Inc (NASDAQ: STRL) have ranged from $4.11 – 9.38, and the stock now has a 50-day MA of $8.43 and 200-day MA of $7.07. Today’s last price is 13.11%% under the 52 week high of $9.38.
Earnings growth is an important factor to look at when buying stocks and investors identify companies that have grown their earnings at least 25% or more for 3 consecutive years.
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