Yamana Gold Inc. (NYSE: AUY) shares fell in early trading today on lower trade volume than normal after a number of analysts weighed in on the investing value of the stock and reiterated thier respective ratings.
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 Credit Suisse Group reiterated a Neutral rating on shares of Yamana Gold Inc. (NYSE: AUY) in a reserach note to investors, making it one of the more closely watched stocks on Wall Street. Credit Suisse Group currently has a rating of Neutral on the shares. A number of other analysts have commented on the company recently, and Yamana Gold Inc. has earned a consensus one-year price target of $4.82, above the opening price of $3.05, a difference of 15.75 percent. Yamana Gold Inc. stock has a 52-week high of $5.99. Usually, after analysts issue a “reiterated rating” report on a stock, they will subsequently issue recurring revisions, such as a price target change.
Shares of Yamana Gold Inc. (NYSE: AUY) opened at $3.05 yesterday and traded in a range between, $3.03 and $3.09, and last traded at $3.06, a dip of $0.07 over the previous closing price.
Yamana Gold Inc. (NYSE: AUY) now has a market cap of 2.90B.
Yamana Gold Inc. (NYSE: AUY) Average Daily Trading Volume
1,827,235 shares crossed the trading desk yesterday, 70 percent lower than the average, out of a total float 946,130,000. lower than normal. Look for trading volume to pick up in the coming days as investors often use increases 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 commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these have substantial teams of analysts that research thousands of stocks, so it is good validation to see them buying a stock you’re researching.
Yamana Gold Inc. (NYSE: AUY) 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 successful trades.
With that in mind, Yamana Gold Inc. (NYSE: AUY) now has a 50-day MA of $2.91 and 200-day MA of $4.18. It has traded in a 52-week range between $1.38 – 5.99 and today’s last price is 48.91%% lower than the 52 week high of $5.99.
Earnings growth is a critical factor to research when investing in stocks and investors seek companies that have raised their earnings by at least 25% for 3 consecutive years.
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