Level 3 Communications, Inc. (NYSE: LVLT) shares rose on Wednesday January 25 on lighter trade volume than normal after a number of analysts weighed in on the investing value of the stock, raising the price target of stock.
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.
Level 3 Communications, Inc. (NYSE: LVLT) had its price target boosted by equities researchers at Jefferies Group LLC from $0.00 to $64.00. With a rating of on the shares, the company has a 52-week high of $59.31. As a means of comparison, a number of other analysts have spoken on the stock in recent days, and Level 3 Communications, Inc. has secured a consensus one-year price target of $62.31, higher than the opening price of $59.08.
Shares of Level 3 Communications, Inc. (NYSE: LVLT) opened at $59.08 yesterday and traded in a range between, $59.02 and $59.31, and last traded at $59.09, which represents a spike of $0.14 over the previous closing price.
Level 3 Communications, Inc. (NYSE: LVLT) now has a market cap of 21.27B.
Level 3 Communications, Inc. (NYSE: LVLT) Average Daily Trading Volume
54,799 shares traded hands yesterday, 64 percent below the norm, out of a total float 292,727,000. lower than normal. Look for trading volume to pick up in the coming days as investors often use upticks 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.
Institutional investors such as these retain substantial teams of analysts that investigate thousands of stocks, so it is good confirmation to see them taking a postion in a stock you are researching.
Level 3 Communications, Inc. (NYSE: LVLT) 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 winning trades.
Trades for Level 3 Communications, Inc. (NYSE: LVLT) have ranged from $41.73 – 59.31, and the stock now has a 50-day MA of $57.56 and 200-day MA of $52.47. Today’s last price is 0.37%% below the 52 week high of $59.31.
Earnings growth is a critical factor to research when buying stocks and investors seek companies that have grown their earnings at least 25% or more for the past 3 years.
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