Nova Measuring Instruments Ltd. (NASDAQ: NVMI) shares rose in value on Tuesday January 31 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, The Dow Jones Industrial Average DJIA, -0.60% fell 140 points, or 0.7%, to 19,833, with 26 of the 30 blue-chip companies trading lower. Nike, Inc. NKE, -1.10% down 2.4% and Intel Corp. INTC, -1.70% off 1%, were leading losses.
The S&P 500 SPX, -0.33% was off by 10 points, or 0.5%, to 2,270 with seven of the 11 main sectors trading lower. Industrials, consumer-discretionary, and technology shares were the worst performers, while real estate and utilities stocks attracted buyers.
The health-care sector, which was down in early trade, rebounded after President Trump called for scaling back drugmaker’s regulation, lowering taxes and prices of medicines.
The Nasdaq Composite COMP, -0.25% declined 31 points, or 0.6%, to 5,581.
Analysts at Zacks Investment Research upgraded shares of Nova Measuring Instruments Ltd. (NASDAQ: NVMI) from Hold to Strong-Buy today. With a rating of Strong-Buy on the stock, the company has a 52-week high of $14.90. The one-year price target of $18.00 is higher than the opening price of $14.81, resulting a number of other analysts to report on the stock in recent days. Usually, after analysts give an upgrade report on a stock, they will subsequently issue periodic revisions, such as a price target change.
Yesterday Nova Measuring Instruments Ltd. (NASDAQ: NVMI) shares last traded at $14.90, which is a jump of $0.24 from the previous closing price. Opening at $14.81, they ranged from $14.81 and $14.90 throughout the day.
Nova Measuring Instruments Ltd. (NASDAQ: NVMI) now has a market cap of 404.82M.
Nova Measuring Instruments Ltd. (NASDAQ: NVMI) Average Daily Trading Volume
15,021 shares traded hands yesterday, 15 percent lower than the average, out of a total float 24,518,000. lower than normal. Look for trading volume to pick up in the coming days as momentum traders often use swings 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 commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors retain substantial teams of analysts that investigate thousands of stocks. So watching their interests is a good way to make sure you are buying the right stocks.
Nova Measuring Instruments Ltd. (NASDAQ: NVMI) 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, Nova Measuring Instruments Ltd. (NASDAQ: NVMI) now has a 50-day MA of $13.86 and 200-day MA of $12.44. It has traded in a 52-week range between $9.17 – 14.90 and today’s last price is the highest it’s been for the past 52 weeks.
Earnings growth is an important factor to research when investing in stocks and investors identify companies that have raised their earnings by at least 25% over the past 3 years.
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