Pure Storage, Inc. (NYSE: PSTG) 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, 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 Zacks Investment Research upgraded shares of Pure Storage, Inc. (NYSE: PSTG) from Hold to Buy today. With a rating of Buy on the stock, the company has a 52-week high of $16.40. The one-year price target of $16.93 is higher than the opening price of $11.52, causing a number of other analysts to report on the company in recent days. Share prices sometimes get a spike to the upside when analysts upgrade a stock.
Yesterday Pure Storage, Inc. (NYSE: PSTG) shares last traded at $11.67, an increase of $0.14 over the previous closing price. Opening at $11.52, they ranged from $11.52 and $11.74 throughout the day.
Pure Storage, Inc. (NYSE: PSTG) currently has a market cap of 2.33B.
Pure Storage, Inc. (NYSE: PSTG) Average Daily Trading Volume
95,855 shares crossed the trading desk yesterday, 38 percent below normal, out of a total float 50,760,000. lower than normal. Look for trading volume to pick up in the coming days as momentum traders often use swings in trading volume to identify heavy volume accumulation or distribution by institutional investors.
While increased trading for one day 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 have teams of analysts that research thousands of stocks. Thus, watching their interests is a good way to ensure you are buying the right stocks.
Pure Storage, Inc. (NYSE: PSTG) 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 identifying trends, moving averages allow investors to make those trends work in their favor and increase the number of winning trades.
With that in mind, Pure Storage, Inc. (NYSE: PSTG) now has a 50-day MA of $12.23 and 200-day MA of $12.60. It has traded in a 52-week range between $9.62 – 16.400 and today’s last price is 28.87%% lower than the 52 week high of $16.40.
Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors look for companies that have grown their earnings by at least 25% over 3 consecutive years.
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