ShoreTel, Inc. (NASDAQ: SHOR) shares slid back 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 Zacks Investment Research upgraded shares of ShoreTel, Inc. (NASDAQ: SHOR) from Hold to Strong-Buy today. With a rating of Strong-Buy on the stock, ShoreTel, Inc. has a 52-week high of $8.56. The one-year price target of $9.63 is above the opening price of $7.10, that has caused a number of other analysts to comment on the company recently. Stock prices often move to the upside on recommendations and new price targets of professional analysts.
Yesterday ShoreTel, Inc. (NASDAQ: SHOR) shares last traded at $7.13, a dip of $0.03 over the previous closing price. Opening at $7.10, they varied from $7.08 and $7.15 throughout the day.
ShoreTel, Inc. (NASDAQ: SHOR) currently has a market cap of 484.81M.
ShoreTel, Inc. (NASDAQ: SHOR) Average Daily Trading Volume
The stock’s average daily volume is 545,226 shares out of a total float 55,700,000 and some 44,421 shares crossed the trading desk yesterday, 18 percent lower than the average. 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.
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 simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors retain substantial teams of analysts researching thousands of stocks, so it is good corroboration to see them taking a postion in a stock you’re researching.
ShoreTel, Inc. (NASDAQ: SHOR) 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 identifying trends, moving averages allow traders to make those trends work in their favor and increase the number of winning trades.
With that in mind, ShoreTel, Inc. (NASDAQ: SHOR) now has a 50-day MA of $7.20 and 200-day MA of $7.47. It has traded in a 52-week range between $5.83 – 8.560 and today’s last price is 16.76%% lower than the 52 week high of $8.56.
Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors seek companies that have raised their earnings at least 25% or more over a 3 year period.
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