Nice Systems Ltd. (NASDAQ: NICE) shares rose in early trading yesterday lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a downgraded 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 Imperial Capital downgraded shares of Nice Systems Ltd. (NASDAQ: NICE) from Outperform to In-Line in a research note to investors today. Imperial Capital currently has a rating of In-Line on the shares. A number of other analysts have commented on the company recently, and Nice Systems Ltd. has earned a consensus one-year price target of $73.86, above the opening price of $68.88, a difference of 10.68 percent. Nice Systems Ltd. stock has a 52-week high of $69.79. Material and fundamental digressions in the company’s actions, future outlook or industry can cause downgrades as the analysts believe that the future prospects for the security have weakened from the original recommendation.
Yesterday Nice Systems Ltd. (NASDAQ: NICE) shares last traded at $69.15, which represents an increase of $1.27 over the previous closing price. Opening at $68.88, they ranged from $68.68 and $69.34 throughout the day.
Nice Systems Ltd. (NASDAQ: NICE) now has a market cap of 4,145.13B.
Nice Systems Ltd. (NASDAQ: NICE) Average Daily Trading Volume
The stock’s average daily volume is 102,790 shares out of a total float 59,762,000 and some 24,459 shares traded hands yesterday, 105 percent below normal. 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 one day will not mean much, conversely, 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 teams of analysts that research thousands of stocks. So watching their interests is a good way to ensure you are buying the right stocks.
Nice Systems Ltd. (NASDAQ: NICE) 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 winning trades.
With that in mind, Nice Systems Ltd. (NASDAQ: NICE) now has a 50-day MA of $67.11 and 200-day MA of $66.46. It has traded in a 52-week range between $54.12 – 69.79 and today’s last price is 0.92%% lower than the 52 week high of $69.79.
Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors seek companies that have been successful at growing their earnings at least 25% or more over 3 consecutive years.
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