Sequans Communications S.A. (NYSE: SQNS) shares rose in value in early trading today on slower 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 Sequans Communications S.A. (NYSE: SQNS) from Hold to Buy today. With a rating of Buy on the stock, the company has a 52-week high of $3.00. As a means of comparison, a number of other analysts have commented on the company in recent days, and the company has secured a consensus one-year price target of $3.50, higher than the opening price of $2.32, a difference of 15.09 percent. Stock prices sometimes get a spike to the upside when analysts upgrade a stock.
Yesterday Sequans Communications S.A. (NYSE: SQNS) shares last traded at $2.32, which is a jump of $0.05 over the previous closing price. Opening at $2.32, they varied from $2.28 and $2.44 throughout the day.
Sequans Communications S.A. (NYSE: SQNS) now has a market cap of 173.01M.
Sequans Communications S.A. (NYSE: SQNS) Average Daily Trading Volume
90,515 shares crossed the trading desk yesterday, 110 percent lower than the average, out of a total float 45,603,000. lower than normal. Look for trading volume to pick up in the coming days as swing traders often use upticks in trading volume to identify heavy volume accumulation or distribution by institutional investors.
As with all potential breakouts, investors look for volume to be at least 40%-50% higher than normal on the breakout to show that fund managers and other professional investors are jumping in.
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 researching thousands of stocks, so it is good confirmation to see them taking a postion in a stock you’re researching.
Sequans Communications S.A. (NYSE: SQNS) 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 Sequans Communications S.A. (NYSE: SQNS) have ranged from $1.53 – 3.0000, and the stock now has a 50-day MA of $1.89 and 200-day MA of $1.89. Today’s last price is 22.59%% lower than the 52 week high of $3.00.
Earnings growth is an important factor to consider when buying stocks and investors look for companies that have raised their earnings at least 25% or more for 3 consecutive years.
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