QAD Inc. (NASDAQ: QADA) shares rose 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 QAD Inc. (NASDAQ: QADA) from Hold to Buy today. With a rating of Buy on the stock, the company has a 52-week high of $31.10. As a means of comparison, a number of other analysts have commented on the stock recently, and the company has earned a consensus one-year price target of $31.25, higher than the opening price of $29.35. Stock prices often move to the upside on recommendations and new price targets of professional analysts.
Yesterday QAD Inc. (NASDAQ: QADA) shares last traded at $29.45, which is a jump of $0.20 compared to the previous closing price. Opening at $29.35, they varied from $29.20 and $29.45 throughout the day.
QAD Inc. (NASDAQ: QADA) now has a market cap of 559.61M.
QAD Inc. (NASDAQ: QADA) Average Daily Trading Volume
The stock’s average daily volume is 43,314 shares out of a total float 11,029,000 and some 1,987 shares traded hands yesterday, 19 percent below the average. 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 is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors retain teams of analysts researching thousands of stocks. Thus, watching their interests is a good way to ensure you are buying the right stocks.
QAD Inc. (NASDAQ: QADA) 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, QAD Inc. (NASDAQ: QADA) now has a 50-day MA of $30.05 and 200-day MA of $24.69. It has traded in a 52-week range between $17.11 – 31.10 and today’s last price is 5.31%% lower than the 52 week high of $31.10.
Earnings growth is a critical factor to look at when investing in stocks and investors identify companies that have increased their earnings at least 25% or more over a 3 year period.
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