L-3 Communications Holdings, Inc. (NYSE: LLL) shares fell in early trading today on lighter trade volume than normal after more analysts initiated coverage on the stock.
Meanwhile, U.S. stocks opened significantly lower in early trading. The Dow Jones Industrial Average was 58 points lower, or 0.29% to 19895, the S&P 500 fell 7 points, or 0.28% to 2268, while the Nasdaq dropped 22 points, or 0.38% to 5542.
Analysts at Royal Bank Of Canada initiated coverage on L-3 Communications Holdings, Inc. (NYSE: LLL) stock, rating the company at Sector Perform. With a rating of Sector Perform on the stock, the company has a 52-week high of $161.91. A number of other analysts have spoken on the stock recently, and the company has earned a consensus one-year price target of $173.92, above the opening price of $146.35, a difference of 11.90 percent. After beginning or initiating coverage, analysts and brokerage firms will subsequently issue periodic updates. Changes in price targets are not unheard of.
Shares of L-3 Communications Holdings, Inc. (NYSE: LLL) opened at $146.35 yesterday and traded in a range between, $145.68 and $149.36, and last traded at $146.16, which represents a drop of $1.34 compared to the previous closing price.
L-3 Communications Holdings, Inc. (NYSE: LLL) currently has a market cap of 11.30B.
L-3 Communications Holdings, Inc. (NYSE: LLL) Average Daily Trading Volume
45,976 shares traded hands yesterday, 97 percent lower than the average, out of a total float 77,246,000. lower than normal. Look for trading volume to pick up in the coming days as investors often use increases 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 is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Professional investors such as these retain substantial teams of analysts that investigate thousands of stocks. So watching their interests is a good way to make sure you are buying the right stocks.
L-3 Communications Holdings, Inc. (NYSE: LLL) 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.
With that in mind, L-3 Communications Holdings, Inc. (NYSE: LLL) now has a 50-day MA of $155.41 and 200-day MA of $149.81. It has traded in a 52-week range between $105.88 – 161.91 and today’s last price is 9.73%% lower than the 52 week high of $161.91.
Earnings growth is a critical factor to consider when buying stocks and investors look for companies that have raised their earnings at least 25% or more over the past 3 years.
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