Social Reality Inc. (NASDAQ: SRAX) shares fell back in value on Tuesday January 17 on slower 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 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.
Analysts at Zacks Investment Research upgraded shares of Social Reality Inc. (NASDAQ: SRAX) from Hold to Buy today. With a rating of Buy on the shares, the company has a 52-week high of $9.40. The one-year price target of $10.75 is higher than the opening price of $3.92, causing a number of other analysts to issue statements on the stock in recent days. Stock prices often trend to the upside on recommendations and new price targets of professional analysts.
Yesterday Social Reality Inc. (NASDAQ: SRAX) shares last traded at $3.90, a dip of $0.04 from the previous closing price. Opening at $3.92, they fluctuated from $3.90 and $3.95 throughout the day.
Social Reality Inc. (NASDAQ: SRAX) now has a market cap of 27.07M.
Social Reality Inc. (NASDAQ: SRAX) Average Daily Trading Volume
1,280 shares traded hands yesterday, 50 percent below normal, out of a total float 3,956,000. lower than normal. Look for trading volume to pick up in the coming days as investors often use upticks 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 simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors retain teams of analysts that research thousands of stocks, so it is good confirmation to see them buying a stock you’re considering.
Social Reality Inc. (NASDAQ: SRAX) 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, Social Reality Inc. (NASDAQ: SRAX) now has a 50-day MA of $6.16 and 200-day MA of $6.55. It has traded in a 52-week range between $3.80 – 9.40 and today’s last price is 58.51%% lower than the 52 week high of $9.40.
Earnings growth is a crucial factor to consider when buying stocks and investors seek companies that have been successful at growing their earnings at least 25% or more for 3 consecutive years.
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