Plexus Corp. (NASDAQ: PLXS) shares slid back in value on Friday January 20 on lighter trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile, U.S. stocks rose Friday morning as Wall Street closely awaited Donald Trump’s inauguration as the nation’s 45th president.
The Dow Jones Industrial Average DJIA, +0.41% rose 95 points, or 0.5%, to 19,826, while the S&P 500 index SPX, +0.41% climbed 11 points, or 0.5%, to 2,275 and the Nasdaq Composite COMP, +0.37% added 28 points, or 0.6%, to 5,571.
Analysts at Zacks Investment Research upgraded shares of Plexus Corp. (NASDAQ: PLXS) from Hold to Buy today. Zacks Investment Research currently has a rating of Buy on the shares. The one-year price target of $53.33 is above the opening price of $53.08, causing a fair amount of other analysts to issue statements on the stock recently. Looking back over the last year, Plexus Corp. stock has a high of $55.58. Stock prices often move to the upside on recommendations and new price targets of professional analysts.
Shares of Plexus Corp. (NASDAQ: PLXS) opened at $53.08 yesterday trading between $51.70 and $54.20, and last traded at $52.97, which represents a dip of $0.34 from the previous closing price.
Plexus Corp. (NASDAQ: PLXS) currently has a market cap of 1.78B.
Plexus Corp. (NASDAQ: PLXS) Average Daily Trading Volume
The stock’s average daily volume is 165,752 shares out of a total float 33,061,000 and some 41,101 shares traded hands yesterday, 19 percent below 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.
While increased trading for short periods will not mean much will not mean much, conversely, 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 just refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors retain teams of analysts researching thousands of stocks, so it is good corroboration to see them buying a stock you are researching.
Plexus Corp. (NASDAQ: PLXS) 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, Plexus Corp. (NASDAQ: PLXS) now has a 50-day MA of $53.58 and 200-day MA of $48.22. It has traded in a 52-week range between $32.94 – 55.58 and today’s last price is 4.70%% lower than the 52 week high of $55.58.
Earnings growth is an important factor to research when investing in stocks and investors look for companies that have grown their earnings by at least 25% over the past 3 years.
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