Cree, Inc. (NASDAQ: CREE) shares rose on Wednesday January 25 on heavier trade volume than normal after a number of analysts weighed in on the investing value of the stock and reiterated thier respective ratings.
Meanwhile, the Dow Jones Industrial Average on Wednesday crossed the 20,000 level for the first time, while the S&P 500 and Nasdaq Composite also traded in record territory shortly after the market opened
The Dow Jones Industrial Average DJIA, +0.60% advanced 100 points, or 0.5%, to 20,012,
The S&P 500 index SPX, +0.55% gained 10 points, or 0.5%, to 2,289, with eight of the main 11 sectors trading higher.
The Nasdaq Composite index COMP, +0.66% was 30 points, or 0.6%, higher at 5,630.
All three main indexes set intraday records shortly after the opening bell.
Analysts at Needham & Company LLC reiterated a Hold rating on shares of Cree, Inc. (NASDAQ: CREE) in a reserach note to investors, making it one of the more actively watched stocks on Wall Street. With a rating of Hold on the stock, Cree, Inc. has a 52-week high of $32.92. A number of other analysts have spoken on the company in recent days, and Cree, Inc. has earned a consensus one-year price target of $24.91, less than the opening price of $28.71. Stock prices often trend to the upside on recommendations and new price targets of professional analysts.
Yesterday Cree, Inc. (NASDAQ: CREE) shares last traded at $31.18, which is a jump of $3.77 compared to the previous closing price. Opening at $28.71, they varied from $28.22 and $31.32 throughout the day.
Cree, Inc. (NASDAQ: CREE) currently has a market cap of 3.14B.
Cree, Inc. (NASDAQ: CREE) Average Daily Trading Volume
The stock’s average daily volume is 1,023,790 shares out of a total float 99,831,000 and some 2,370,131 shares crossed the trading desk yesterday, 45 percent above the norm. higher than normal. Significant increases in trading volume and price appreciation together could signal heavy volume accumulation by institutional investors.
While increased trading for short periods will not mean much 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 instituitional investors retain teams of analysts researching thousands of stocks, so it is good validation to see them buying a stock you’re researching.
Cree, Inc. (NASDAQ: CREE) 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 traders to make those trends work in their favor and increase the number of successful trades.
With that in mind, Cree, Inc. (NASDAQ: CREE) now has a 50-day MA of $27.22 and 200-day MA of $25.62. It has traded in a 52-week range between $20.75 – 32.92 and today’s last price is 5.29%% lower than the 52 week high of $32.92.
Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors watch for companies that have been successful at growing their earnings at least 25% or more over a 3 year period.
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