SBA Communications Corp. (NASDAQ: SBAC) shares rose in value on Friday January 20 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, 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 SBA Communications Corp. (NASDAQ: SBAC) from Sell to Hold today. With a rating of Hold on the stock, the company has a 52-week high of $118.57. As a means of comparison, a number of other analysts have issued reports on the company recently, and SBA Communications Corp. has secured a consensus one-year price target of $130.07, higher than the opening price of $106.35, a difference of 12.18 percent. Usually, after analysts give an upgrade report on a stock, they will subsequently issue recurring updates, such as a price target change.
Shares of SBA Communications Corp. (NASDAQ: SBAC) opened at $106.35 yesterday trading between $104.22 and $106.88, and last traded at $106.76, which represents a jump of $1.00 over the previous closing price.
SBA Communications Corp. (NASDAQ: SBAC) now has a market cap of 13.25B.
SBA Communications Corp. (NASDAQ: SBAC) Average Daily Trading Volume
The stock’s average daily volume is 1,138,510 shares out of a total float 122,978,000 and some 87,960 shares crossed the trading desk yesterday, 15 percent below the norm. lower than normal. Look for trading volume to pick up in the coming days as momentum traders often use upticks in trading volume to identify heavy volume accumulation or distribution by institutional investors.
While increased trading for one day 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 is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors retain teams of analysts that investigate thousands of stocks, so it is good validation to see them taking a postion in a stock you are researching.
SBA Communications Corp. (NASDAQ: SBAC) 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 spotting trends, moving averages allow investors to make those trends work in their favor and increase the number of successful trades.
With that in mind, SBA Communications Corp. (NASDAQ: SBAC) now has a 50-day MA of $102.81 and 200-day MA of $108.83. It has traded in a 52-week range between $82.80 – 118.57 and today’s last price is 9.96%% lower than the 52 week high of $118.57.
Earnings growth is a crucial factor to research when investing in stocks and investors look for companies that have raised their earnings by at least 25% over a 3 year period.
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