KLA-Tencor Corp. (NASDAQ: KLAC) shares rose on Monday January 23 on lower trade volume than normal after a number of analysts weighed in on the investing value of the stock, increasing the price target of stock.
Meanwhile, U.S. stocks flipped between small gains and losses in early trade on Monday.
The Dow Jones Industrial Average DJIA, -0.14% was off by 13 points, or less than 0.1%, at 19,815, with McDonald’s Corp MCD, -0.99% and General Electric CoGE, -0.95% leading the losses, down more than 1%.
The S&P 500 SPX, -0.18% slipped 2 point to 2,270, with five of the main sectors trading lower. The Nasdaq Composite COMP, -0.09% gained 4 points to 5,558.
KLA-Tencor Corp. (NASDAQ: KLAC) had its price target increased by equities researchers at Deutsche Bank from $0.00 to $78.00. Deutsche Bank currently has a rating of on the stock. The one-year price target of $79.70 is a decrease compared to the opening price of $81.69, causing a number of other analysts to report on the company recently. Looking back over the last year, KLA-Tencor Corp. stock has a high of $83.23.
Yesterday KLA-Tencor Corp. (NASDAQ: KLAC) shares last traded at $81.66, which is a jump of $0.10 from the previous closing price. Opening at $81.69, they varied from $81.54 and $81.93 throughout the day.
KLA-Tencor Corp. (NASDAQ: KLAC) currently has a market cap of 12.76B.
KLA-Tencor Corp. (NASDAQ: KLAC) Average Daily Trading Volume
128,738 shares crossed the trading desk yesterday, 80 percent lower than the norm, out of a total float 155,826,000. lower than normal. Look for trading volume to pick up in the coming days as investors often use increases 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 is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors retain 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.
KLA-Tencor Corp. (NASDAQ: KLAC) 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 KLA-Tencor Corp. (NASDAQ: KLAC) have ranged from $62.33 – 83.23, and the stock now has a 50-day MA of $79.07 and 200-day MA of $74.68. Today’s last price is 1.89%% lower than the 52 week high of $83.23.
Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors identify companies that have increased their earnings by at least 25% over a 3 year period.
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