BlackBerry Limited (NASDAQ: BBRY) shares slid back in value on Thursday February 2 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, -0.10% 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 Zacks Investment Research upgraded shares of BlackBerry Limited (NASDAQ: BBRY) from Hold to Strong-Buy today. With a rating of Strong-Buy on the shares, BlackBerry Limited has a 52-week high of $8.46. The one-year price target of $7.61 is above the opening price of $6.98, that has caused a number of other analysts to issue statements on the stock in recent days. Stock prices sometimes get a boost to the upside when analysts upgrade a stock.
Yesterday BlackBerry Limited (NASDAQ: BBRY) shares last traded at $6.98, which represents a decrease of $0.02 from the previous closing price. Opening at $6.98, they ranged from $6.97 and $7.06 throughout the day.
BlackBerry Limited (NASDAQ: BBRY) currently has a market cap of 3.70B.
BlackBerry Limited (NASDAQ: BBRY) Average Daily Trading Volume
The stock’s average daily volume is 4,768,610 shares out of a total float 526,348,000 and some 565,881 shares traded hands yesterday, 81 percent lower than the norm. lower than normal. Look for trading volume to pick up in the coming days as momentum traders often use increases 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 just refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these have teams of analysts researching thousands of stocks. Thus, watching their interests is a good way to make sure you are buying the right stocks.
BlackBerry Limited (NASDAQ: BBRY) 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.
Trades for BlackBerry Limited (NASDAQ: BBRY) have ranged from $6.23 – 8.46, and the stock now has a 50-day MA of $7.20 and 200-day MA of $7.48. Today’s last price is 17.49%% lower than the 52 week high of $8.46.
Earnings growth is a crucial factor to research when buying stocks and investors identify companies that have been successful at growing their earnings at least 25% or more for the past 3 years.
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