The Spectranetics Corporation (NASDAQ: SPNC) shares rose in value on Thursday February 2 on lower 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 The Spectranetics Corporation (NASDAQ: SPNC) from Sell to Hold today. With a rating of Hold on the shares, the company has a 52-week high of $27.40. As a means of comparison, a number of other analysts have issued reports on the company recently, and The Spectranetics Corporation has earned a consensus one-year price target of $28.18, higher than the opening price of $26.35, a difference of 10.61 percent. Usually, after analysts give an upgrade report on a stock, they will subsequently issue periodic updates, often followed by a price target change.
Yesterday The Spectranetics Corporation (NASDAQ: SPNC) shares last traded at $26.55, an increase of $0.05 over the previous closing price. Opening at $26.35, they ranged from $26.30 and $26.60 throughout the day.
The Spectranetics Corporation (NASDAQ: SPNC) now has a market cap of 1.15B.
The Spectranetics Corporation (NASDAQ: SPNC) Average Daily Trading Volume
The stock’s average daily volume is 350,063 shares out of a total float 42,318,000 and some 10,155 shares traded hands yesterday, 69 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.
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 professional 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 are considering.
The Spectranetics Corporation (NASDAQ: SPNC) 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 successful trades.
With that in mind, The Spectranetics Corporation (NASDAQ: SPNC) now has a 50-day MA of $24.91 and 200-day MA of $23.92. It has traded in a 52-week range between $11.09 – 27.40 and today’s last price is 3.10%% lower than the 52 week high of $27.40.
Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors seek companies that have increased their earnings at least 25% or more over the past 3 years.
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