Zayo Group Holdings, Inc. (NYSE: ZAYO) 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 Stifel Nicolaus initiated coverage on Zayo Group Holdings, Inc. (NYSE: ZAYO) stock, rating the company at Buy. The company currently has a rating of Buy on the shares. A number of other analysts have commented on the company recently, and the company has earned a consensus one-year price target of $36.13, above the opening price of $31.57. Zayo Group Holdings, Inc. stock has a 52-week high of $35.65. Changes in price targets are not uncommon as analysts and brokerage firms will publish periodic updates after initiating coverage,.
Yesterday Zayo Group Holdings, Inc. (NYSE: ZAYO) shares last traded at $31.79, a spike of $0.49 over the previous closing price. Opening at $31.57, they fluctuated from $31.57 and $32.21 throughout the day.
Zayo Group Holdings, Inc. (NYSE: ZAYO) now has a market cap of 7.73B.
Zayo Group Holdings, Inc. (NYSE: ZAYO) Average Daily Trading Volume
The stock’s average daily volume is 3,263,220 shares out of a total float 174,936,000 and some 308,178 shares crossed the trading desk yesterday, 63 percent lower than normal. lower than normal. Look for trading volume to pick up in the coming days as swing traders 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 just 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 researching thousands of stocks, so it is good confirmation to see them taking a postion in a stock you are considering.
Zayo Group Holdings, Inc. (NYSE: ZAYO) 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.
Trades for Zayo Group Holdings, Inc. (NYSE: ZAYO) have ranged from $19.59 – 35.65, and the stock now has a 50-day MA of $33.10 and 200-day MA of $30.75. Today’s last price is 10.83%% lower than the 52 week high of $35.65.
Earnings growth is a crucial factor to look at when investing in stocks and investors seek companies that have increased their earnings by at least 25% over a 3 year period.
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