Extreme Networks, Inc. (NASDAQ: EXTR) shares rose on Tuesday January 17 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 trade, the Dow Jones Industrial Average was 47 points lower, or 0.24% to 19838, the S&P 500 fell 7 points, or 0.29% to 2267, while the Nasdaq was down 19 points, or 0.35% to 5554.
Needham & Company LLC analysts reiterated its Buy rating on Extreme Networks, Inc. (NASDAQ: EXTR) in a note to investors, making it one of the more closely watched stocks on Wall Street. The company currently has a rating of Buy on the shares. The one-year price target of $5.45 is higher than the opening price of $5.43, that has caused a fair amount of other analysts to issue statements on the stock in recent days. Looking back over the last 52 weeks, Extreme Networks, Inc. stock has a high of $5.49. Share prices sometimes get a spike to the upside when analysts reiterate coverage.
Shares of Extreme Networks, Inc. (NASDAQ: EXTR) opened at $5.43 yesterday and traded in a range between, $5.32 and $5.43, and last traded at $5.38, which represents a spike of $0.03 over the previous closing price.
Extreme Networks, Inc. (NASDAQ: EXTR) now has a market cap of 575.95M.
Extreme Networks, Inc. (NASDAQ: EXTR) Average Daily Trading Volume
The stock’s average daily volume is 681,286 shares out of a total float 97,958,000 and some 295,828 shares traded hands yesterday, 13 percent lower than the average. 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, however, 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 commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors have teams of analysts researching thousands of stocks. Thus, watching their interests is a good way to make sure you are buying the right stocks.
Extreme Networks, Inc. (NASDAQ: EXTR) 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, Extreme Networks, Inc. (NASDAQ: EXTR) now has a 50-day MA of $4.80 and 200-day MA of $4.21. It has traded in a 52-week range between $2.32 – 5.49 and today’s last price is 1.91%% lower than the 52 week high of $5.49.
Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors watch for companies that have been successful at growing their earnings at least 25% or more for 3 consecutive years.
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