Silver Spring Networks, Inc. (SSNI) stock coverage initiated with “Market Outperform” in note to investors by JMP Securities

Silver Spring Networks, Inc. (NYSE: SSNI) shares rose in early trading today on lighter trade volume than normal after more analysts initiated coverage on the stock.

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 JMP Securities initiated coverage on Silver Spring Networks, Inc. (NYSE: SSNI) stock, starting the company at Market Outperform. With a rating of Market Outperform on the stock, Silver Spring Networks, Inc. has a 52-week high of $15.40. A number of other analysts have spoken on the stock recently, and the company has secured a consensus one-year price target of $16.11, above the opening price of $12.93, a difference of 12.25 percent. Changes in price targets are not uncommon as analysts and brokerage firms will publish periodic updates after beginning or initiating coverage.

Yesterday Silver Spring Networks, Inc. (NYSE: SSNI) shares last traded at $13.15, which is a jump of $0.50 from the previous closing price. Opening at $12.93, they ranged from $12.89 and $13.40 throughout the day.

Silver Spring Networks, Inc. (NYSE: SSNI) now has a market cap of 682.41M.

Silver Spring Networks, Inc. (NYSE: SSNI) Average Daily Trading Volume

The stock’s average daily volume is 226,117 shares out of a total float 36,750,000 and some 63,966 shares crossed the trading desk yesterday, 6 percent below normal. 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.

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 simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.

These professional investors retain teams of analysts that investigate thousands of stocks, so it is good validation to see them taking a postion in a stock you are considering.

Silver Spring Networks, Inc. (NYSE: SSNI) 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.

With that in mind, Silver Spring Networks, Inc. (NYSE: SSNI) now has a 50-day MA of $13.45 and 200-day MA of $13.42. It has traded in a 52-week range between $9.55 – 15.40 and today’s last price is 14.61%% lower than the 52 week high of $15.40.

Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors seek companies that have grown their earnings at least 25% or more for a 3 year period.

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