Advanced Micro Devices Inc. (NASDAQ: AMD) shares slid back in value Tuesday Nov 22 with 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 opened opened higher, trading above 19,000 for the first time ever, while the S&P 500 traded above 2,200 shortly after the opening bell on Tuesday.
The S&P 500 SPX, +0.17% opened 5 points, or 0.2%, higher at 2,202. The Dow Jones Industrial Average DJIA, +0.20% added 45 points, or 0.2%, to 19,002. The Nasdaq Composite COMP, +0.25% began the session up 16 points, or 0.3%, at 5,385.
Analysts at Vetr Inc. upgraded shares of Advanced Micro Devices Inc. (NASDAQ: AMD) from Buy to Strong-Buy today. With a rating of Strong-Buy on the shares, the company has a 52-week high of $9.22. The one-year price target of $6.91 is lower than the opening price of $9.05, that has caused a number of other analysts to issue statements on the stock in recent days. Typically, after analysts publish an upgrade report on a stock, they will subsequently issue other revisions, often followed by a price target change.
Advanced Micro Devices Inc. (NASDAQ: AMD) shares last traded at $8.85, a decrease of $0.09 per share or -1.01% from the previous closing price. Opening at $9.05, they varied from $8.81 and $9.06 throughout the day.
Advanced Micro Devices Inc. (NASDAQ: AMD) now has a market cap of 8.20B.
Advanced Micro Devices Inc. (NASDAQ: AMD) Average Daily Trading Volume
The stock’s average daily volume is 43,935,700 shares out of a total float 778,032,000 and some 6,383,363 shares traded hands yesterday, lower than the average. Investors often use increases in trading volume to identify heavy volume growth or distribution by institutional investors, so look for trading volume to pick up in the coming days.
As with all possible 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 just refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these retain teams of analysts that research thousands of stocks, so it is good corroboration to see them buying a stock you are researching.
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.
By spotting trends, moving averages allow traders to make those trends work in their favor and increase the number of winning trades.
With that in mind, Advanced Micro Devices Inc. (NASDAQ: AMD) now has a 50-day MA of $7.03 and 200-day MA of $5.99. It has traded in a 52-week range between $1.75 – 9.22 and today’s last price is 4.01%% lower than the 52 week high of $9.22.
Earnings growth is a critical factor to consider when buying stocks and investors identify companies that have been successful at growing their earnings at least 25% or more for the past 3 years.
DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of the website. Readers should not consider statements made by the author as formal recommendations and should consult their financial adviser before making any investment decisions. To read our full disclosure, please see our terms and conditions page.