Advanced Micro Devices Inc. (AMD) Shares Tick Up after Upgrade at Zacks Investment Research

Advanced Micro Devices Inc. (NASDAQ: AMD) shares rose in value Thursday Nov 17 with lighter 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 Advanced Micro Devices Inc. (NASDAQ: AMD) from Hold to Buy today. The company currently has a rating of Buy on the stock. As a means of comparison, a number of other analysts have spoken on the stock in recent days, and Advanced Micro Devices Inc. has earned a consensus one-year price target of $6.91, a decrease compared to the opening price of $7.79. Advanced Micro Devices Inc. stock has a 52-week high of $8.16. Stock prices sometimes get a jump to the upside when analysts upgrade a stock.

Shares of Advanced Micro Devices Inc. (NASDAQ: AMD) opened at $7.79 on Monday and traded in a range between, $7.77 and $8.16, and last traded at $8.12, which represents a jump of $0.45 or 5.89% compared to the previous closing price.

Advanced Micro Devices Inc. (NASDAQ: AMD) currently has a market cap of 7,527.94B.

Advanced Micro Devices Inc. (NASDAQ: AMD) Average Daily Trading Volume

The stock’s average daily volume is 41,898,000 shares out of a total float 778,161,000 and some 21,683,940 shares traded hands yesterday, below normal. Investors often use upticks in trading volume to pinpoint large volume growth or dissemination by institutional investors, so look for trading volume to pick up in the coming days.

As with all potential breakouts, investors look for volume to be at least 40%-50% above normal on the breakout to indicate 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 substantial teams of analysts that investigate thousands of stocks. Thus, watching their interests is a good way to make sure you are buying the right stocks.

Advanced Micro Devices Inc. (NASDAQ: AMD) 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.

Traders are able to make make more useful choices on trades when they track the activity of professional investors.

Trades for Advanced Micro Devices Inc. (NASDAQ: AMD) have ranged from $1.75 – 8.1600, and the stock now has a 50-day MA of $6.87 and 200-day MA of $5.87. Today’s last price is 0.47%% below the 52 week high of $8.16.

Indeed, earnings growth is among the most important 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 the past 3 years.

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