Photronics, Inc. (NASDAQ: PLAB) shares slid back 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.
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 Zacks Investment Research upgraded shares of Photronics, Inc. (NASDAQ: PLAB) from Sell to Hold today. With a rating of Hold on the shares, the company has a 52-week high of $12.40. The one-year price target of $12.00 is higher than the opening price of $11.00, resulting a number of other analysts to comment on the stock recently. Share prices sometimes get a spike to the upside when analysts upgrade a stock.
Yesterday Photronics, Inc. (NASDAQ: PLAB) shares last traded at $10.85, a decrease of $0.15 compared to the previous closing price. Opening at $11.00, they fluctuated from $10.80 and $11.00 throughout the day.
Photronics, Inc. (NASDAQ: PLAB) now has a market cap of 741.33M.
Photronics, Inc. (NASDAQ: PLAB) Average Daily Trading Volume
The stock’s average daily volume is 465,592 shares out of a total float 66,869,000 and some 29,206 shares traded hands yesterday, 55 percent below 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 commonly 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 confirmation to see them buying a stock you’re considering.
Photronics, Inc. (NASDAQ: PLAB) 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 investors to make those trends work in their favor and increase the number of successful trades.
With that in mind, Photronics, Inc. (NASDAQ: PLAB) now has a 50-day MA of $10.94 and 200-day MA of $10.03. It has traded in a 52-week range between $8.20 – 12.40 and today’s last price is 12.50%% lower than the 52 week high of $12.40.
Earnings growth is a critical factor to look at when investing in stocks and investors watch for companies that have increased their earnings at least 25% or more over the past 3 years.
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