Yintech Investment Holdings Limited (NASDAQ: YIN) shares rose in value in early trading today on lower 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 Yintech Investment Holdings Limited (NASDAQ: YIN) from Hold to Strong-Buy today. With a rating of Strong-Buy on the stock, the company has a 52-week high of $20.95. The one-year price target of $26.65 is above the opening price of $17.19, causing a number of other analysts to issue statements on the company recently. Stock prices sometimes get a spike to the upside when analysts upgrade a stock.
Yesterday Yintech Investment Holdings Limited (NASDAQ: YIN) shares last traded at $17.48, a jump of $0.29 over the previous closing price. Opening at $17.19, they fluctuated from $17.19 and $17.60 throughout the day.
Yintech Investment Holdings Limited (NASDAQ: YIN) currently has a market cap of 1.19B.
Yintech Investment Holdings Limited (NASDAQ: YIN) Average Daily Trading Volume
13,138 shares crossed the trading desk yesterday, 100 percent below the average, out of a total float 17,544,000. 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.
While increased trading for short periods will not mean much 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.
Institutional investors such as these retain teams of analysts researching thousands of stocks, so it is good corroboration to see them taking a postion in a stock you are researching.
Yintech Investment Holdings Limited (NASDAQ: YIN) 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, Yintech Investment Holdings Limited (NASDAQ: YIN) now has a 50-day MA of $17.08 and 200-day MA of $16.90. It has traded in a 52-week range between $10.92 – 20.9500 and today’s last price is 16.58%% lower than the 52 week high of $20.95.
Earnings growth is an important factor to look at when buying stocks and investors identify companies that have increased their earnings at least 25% or more over the past 3 years.
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