Acacia Communications Inc. (NASDAQ: ACIA) shares rose in value Thursday Nov 17 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile, stocks opened flat this morning, struggling for direction in early trade ahead of congressional testimony by Federal Reserve Chairwoman Janet Yellen. Ahead of an appearance before the Joint Economic Committee, Yellen said an interest-rate hike could come “relatively soon,”
The S&P 500 SPX, +0.25% fell less than 0.1% to 2,176.85 while Dow Industrials DJIA, -0.05% fell 9 points to 18,858. The Nasdaq Composite COMP, +0.18% declined 0.1% to 5,291.48.
Analysts at Zacks Investment Research upgraded shares of Acacia Communications Inc. (NASDAQ: ACIA) from Hold to Strong-Buy today. The company currently has a rating of Strong-Buy on the shares. The one-year price target of $119.00 is higher than the opening price of $77.00, that has caused a number of other analysts to comment on the stock recently. Looking back over the last 52 weeks, Acacia Communications Inc. stock has a high of $128.73. Usually, after analysts issue an upgrade report on a stock, they will subsequently issue other revisions, such as a price target change.
Shares of Acacia Communications Inc. (NASDAQ: ACIA) opened at $77.00 on Monday and traded in a range between, $76.00 and $77.91, and last traded at $76.98, an increase of $0.57 or 0.75% compared to the previous closing price.
Acacia Communications Inc. (NASDAQ: ACIA) now has a market cap of 2,880.82B.
Acacia Communications Inc. (NASDAQ: ACIA) Average Daily Trading Volume
The stock’s average daily volume is 2,411,340 shares out of a total float 13,282,000 and some 242,234 shares crossed the trading desk yesterday, lower than the norm. Look for trading volume to pick up in the coming days as swing traders often use upticks in trading volume to identify large volume aggregation or dissemination by institutional investors.
While higher trading for short periods will not mean much, however, a trend of heavy trading volume on the buy side over a period of days or weeks delivers a positive signal to market traders that institutions may be moving in, so institutional sponsorship is critical.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these retain teams of analysts researching thousands of stocks. So watching their interests is a good way to ensure you are buying the right stocks.
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 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, Acacia Communications Inc. (NASDAQ: ACIA) now has a 50-day MA of $84.63 and 200-day MA of $73.26. It has traded in a 52-week range between $27.05 – 128.7300 and today’s last price is 40.20%% lower than the 52 week high of $128.73.
Earnings growth is a crucial factor to research when buying stocks and investors identify companies that have raised their earnings by at least 25% for 3 consecutive years.
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