Advanced Drainage Systems, Inc. (NYSE: WMS) shares rose in value on Friday, January 13 on heavier trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile, The Dow Jones Industrial Average DJIA, -0.03% slipped 5.27 points to close 19,885.73, moving in a roughly 100-point range all session. For the week, the blue-chip index is off 0.4%.
U.S. financial markets will be closed Monday for Martin Luther King Jr. Day.
The S&P 500 index SPX, +0.18% added 4.20 points, or 0.2%, to end at 2,274.64 for a weekly loss of 0.1%, and the Nasdaq Composite Index COMP, +0.48% climbed 26.63 points, or 0.5%, to finish at 5,574.12, its sixth all-time closing high in seven trading sessions.
Analysts at Robert W. Baird upgraded shares of Advanced Drainage Systems, Inc. (NYSE: WMS) from Neutral to Outperform today. With a rating of Outperform on the shares, the company has a 52-week high of $28.49. The one-year price target of $24.29 is less than the opening price of $25.60, resulting a number of other analysts to report on the company recently. Share prices sometimes get a bounce to the upside when analysts upgrade a stock.
Shares of Advanced Drainage Systems, Inc. (NYSE: WMS) opened at $25.60 yesterday trading between $23.70 and $26.30, and last traded at $23.80, which represents a jump of $0.50 from the previous closing price.
Advanced Drainage Systems, Inc. (NYSE: WMS) now has a market cap of 1.30B.
Advanced Drainage Systems, Inc. (NYSE: WMS) Average Daily Trading Volume
1,216,422 shares crossed the trading desk yesterday, 18 percent higher than the norm, out of a total float 28,842,000. higher than normal. Significant increases in trading volume and price appreciation together could signal heavy volume accumulation 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 is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors have teams of analysts researching thousands of stocks, so it is good confirmation to see them buying a stock you are researching.
Advanced Drainage Systems, Inc. (NYSE: WMS) 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 Advanced Drainage Systems, Inc. (NYSE: WMS) have ranged from $17.72 – 28.49, and the stock now has a 50-day MA of $21.03 and 200-day MA of $23.18. Today’s last price is 16.46%% below the 52 week high of $28.49.
Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors watch for companies that have grown their earnings by at least 25% over 3 consecutive years.
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