Southern Copper Corporation (NYSE: SCCO) 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 Zacks Investment Research upgraded shares of Southern Copper Corporation (NYSE: SCCO) from Hold to Buy today. With a rating of Buy on the stock, the company has a 52-week high of $35.80. The one-year price target of $31.81 is a decrease compared to the opening price of $35.34, causing a fair amount of other analysts to comment on the stock in recent days. Stock prices often shift to the upside on recommendations and new price targets of professional brokerage firms.
Shares of Southern Copper Corporation (NYSE: SCCO) opened at $35.34 yesterday trading between $35.27 and $35.80, and last traded at $35.69, a spike of $0.54 over the previous closing price.
Southern Copper Corporation (NYSE: SCCO) now has a market cap of 27.59B.
Southern Copper Corporation (NYSE: SCCO) Average Daily Trading Volume
The stock’s average daily volume is 1,202,870 shares out of a total float 82,650,000 and some 92,005 shares traded hands yesterday, 1 percent below normal. lower than normal. Look for trading volume to pick up in the coming days as swing traders often use swings 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.
Professional investors such as these have substantial teams of analysts that investigate thousands of stocks. Thus, watching their interests is a good way to make sure you are buying the right stocks.
Southern Copper Corporation (NYSE: SCCO) 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 Southern Copper Corporation (NYSE: SCCO) have ranged from $21.55 – 35.80, and the stock now has a 50-day MA of $33.30 and 200-day MA of $28.63. Today’s last price is 0.31%% lower than the 52 week high of $35.80.
Earnings growth is a critical factor to consider when investing in stocks and investors watch for companies that have raised their earnings by at least 25% for a 3 year period.
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