Scorpio Bulkers Inc. (NYSE: SALT) shares rose in value on Wednesday January 18 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 trade today, the S&P 500 SPX, +0.00% was off 2 points, or 0.1%, at 2,265, shortly after open. The Nasdaq Composite COMP, +0.20% was flat at 5,537. The Dow Jones Industrial Average DJIA, -0.20% slipped 54 points or 0.3%, to 19,770.
Analysts at Evercore ISI upgraded shares of Scorpio Bulkers Inc. (NYSE: SALT) from Hold to Buy today. With a rating of Buy on the stock, Scorpio Bulkers Inc. has a 52-week high of $6.70. A number of other analysts have issued reports on the company recently, and Scorpio Bulkers Inc. has earned a consensus one-year price target of $5.44, less than the opening price of $6.35, a difference of 8.43 percent. Stock prices often shift to the upside on recommendations and new price targets of professional brokerage firms.
Yesterday Scorpio Bulkers Inc. (NYSE: SALT) shares last traded at $6.45, which represents a jump of $0.45 compared to the previous closing price. Opening at $6.35, they fluctuated from $6.35 and $6.70 throughout the day.
Scorpio Bulkers Inc. (NYSE: SALT) currently has a market cap of 461.65M.
Scorpio Bulkers Inc. (NYSE: SALT) Average Daily Trading Volume
The stock’s average daily volume is 855,829 shares out of a total float 49,017,000 and some 406,158 shares crossed the trading desk yesterday, 12 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.
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 commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these have teams of analysts researching thousands of stocks, so it is good validation to see them buying a stock you’re considering.
Scorpio Bulkers Inc. (NYSE: SALT) 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 Scorpio Bulkers Inc. (NYSE: SALT) have ranged from $1.79 – 6.70, and the stock now has a 50-day MA of $5.35 and 200-day MA of $4.08. Today’s last price is 3.73%% below the 52 week high of $6.70.
Earnings growth is an important factor to research when investing in stocks and investors seek companies that have been successful at growing their earnings by at least 25% over a 3 year period.
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