MagnaChip Semiconductor Corporation (NYSE: MX) shares rose 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, in early trading today the Dow Jones Industrial Average DJIA, +0.19% rose 40 points, or 0.2%, to 19,929 while the S&P 500 SPX, +0.31% added 5 points to 2,275, a rise of 0.2%. The Nasdaq Composite Index COMP, +0.53% climbed 19 points, or 0.3%, to 5,567.
Analysts at Needham & Company LLC upgraded shares of MagnaChip Semiconductor Corporation (NYSE: MX) from Hold to Buy today. Needham & Company LLC currently has a rating of Buy on the shares. As a means of comparison, a number of other analysts have issued reports on the stock in recent days, and the company has earned a consensus one-year price target of $10.00, above the opening price of $6.90. MagnaChip Semiconductor Corporation stock has a 52-week high of $9.17. Usually, after analysts issue an upgrade report on a stock, they will later issue other updates, usually followed by a price target change.
Shares of MagnaChip Semiconductor Corporation (NYSE: MX) opened at $6.90 yesterday and traded in a range between, $6.85 and $7.00, and last traded at $6.93, a spike of $0.28 from the previous closing price.
MagnaChip Semiconductor Corporation (NYSE: MX) now has a market cap of 242.36M.
MagnaChip Semiconductor Corporation (NYSE: MX) Average Daily Trading Volume
87,589 shares traded hands yesterday, 13 percent lower than the average, out of a total float 20,542,000. lower than normal. Look for trading volume to pick up in the coming days as swing 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.
Professional investors such as these have substantial teams of analysts that research thousands of stocks. Thus, watching their interests is a good way to make sure you are buying the right stocks.
MagnaChip Semiconductor Corporation (NYSE: MX) 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 traders to make those trends work in their favor and increase the number of winning trades.
With that in mind, MagnaChip Semiconductor Corporation (NYSE: MX) now has a 50-day MA of $6.37 and 200-day MA of $6.96. It has traded in a 52-week range between $3.10 – 9.170 and today’s last price is 24.48%% lower than the 52 week high of $9.17.
Earnings growth is an important factor to research when investing in stocks and investors watch for companies that have increased their earnings at least 25% or more over a 3 year period.
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