Acacia Communications, Inc. (NASDAQ: ACIA) shares rose in value on Thursday February 2 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, -0.10% fell 34 points, or 0.2%, to 19,858. The S&P 500 SPX, -0.11% lost 4 points to 2,276, a drop of 0.2%. The Nasdaq Composite Index COMP, -0.05% slid 16 points, or 0.3%, to 5,626. Among the most actively traded Nasdaq stocks was Facebook Inc FB, +0.31% which fell 0.7% a day after it reported its quarterly results.
Analysts at Morgan Stanley upgraded shares of Acacia Communications, Inc. (NASDAQ: ACIA) from Equal Weight to Overweight today. With a rating of Overweight on the stock, the company has a 52-week high of $128.73. The one-year price target of $112.50 is higher than the opening price of $56.97, causing a fair amount of other analysts to report on the stock in recent days. Usually, after analysts assign an upgrade report on a stock, they will later issue recurring revisions, such as a price target change.
Shares of Acacia Communications, Inc. (NASDAQ: ACIA) opened at $56.97 yesterday trading between $56.15 and $58.28, and last traded at $56.62, a jump of $1.64 over the previous closing price.
Acacia Communications, Inc. (NASDAQ: ACIA) now has a market cap of 2.12B.
Acacia Communications, Inc. (NASDAQ: ACIA) Average Daily Trading Volume
754,201 shares crossed the trading desk yesterday, 88 percent below normal, out of a total float 14,201,000. 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.
However, a single day of heavy buy side trading is not enough to assert a trend. As such, market traders will continue to watch for institutional sponsorship as a signal that financial institutions are moving forward.
Institutional sponsorship commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors have substantial teams of analysts that research thousands of stocks, so it is good validation to see them buying a stock you are considering.
Acacia Communications, Inc. (NASDAQ: ACIA) 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.
With that in mind, Acacia Communications, Inc. (NASDAQ: ACIA) now has a 50-day MA of $62.78 and 200-day MA of $80.76. It has traded in a 52-week range between $27.05 – 128.73 and today’s last price is 56.02%% lower than the 52 week high of $128.73.
Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors seek companies that have grown their earnings at least 25% or more for 3 consecutive years.
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