OSI Systems, Inc. (NASDAQ: OSIS) shares fell back in value on Tuesday January 31 on slower 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 OSI Systems, Inc. (NASDAQ: OSIS) from Hold to Strong-Buy today. With a rating of Strong-Buy on the shares, the company has a 52-week high of $78.86. The one-year price target of $85.00 is higher than the opening price of $74.60, that has caused a fair amount of other analysts to comment on the stock recently. Typically, after analysts assign an upgrade report on a stock, they will later issue other revisions, usually followed by a price target change.
Yesterday OSI Systems, Inc. (NASDAQ: OSIS) shares last traded at $74.59, which represents a decrease of $0.31 over the previous closing price. Opening at $74.60, they varied from $74.23 and $74.67 throughout the day.
OSI Systems, Inc. (NASDAQ: OSIS) currently has a market cap of 1.47B.
OSI Systems, Inc. (NASDAQ: OSIS) Average Daily Trading Volume
13,897 shares crossed the trading desk yesterday, 121 percent below the average, out of a total float 18,447,000. 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.
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 research thousands of stocks, so it is good confirmation to see them buying a stock you are researching.
OSI Systems, Inc. (NASDAQ: OSIS) 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 winning trades.
With that in mind, OSI Systems, Inc. (NASDAQ: OSIS) now has a 50-day MA of $74.89 and 200-day MA of $69.06. It has traded in a 52-week range between $48.19 – 78.86 and today’s last price is 5.41%% lower than the 52 week high of $78.86.
Earnings growth is a critical factor to research when buying stocks and investors identify companies that have grown their earnings by at least 25% for a 3 year period.
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