Brooks Automation Inc. (BRKS) Shares Active after Upgrade at Citigroup Inc.

Brooks Automation Inc. (NASDAQ: BRKS) shares rose in value in early trade today on 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 fat this morning as investors wait on the minutes from the Federal Reserve’s latest policy meeting, which may confirm expectations for a December rate hike.

The S&P 500 was up 2 points, or 0.1%, to 2,138. The Dow Jones Industrial Average was flat at 18,128. The Nasdaq Composite began the session unchanged at 5,247.

Analysts at Citigroup Inc. upgraded shares of Brooks Automation Inc. (NASDAQ: BRKS) from Neutral to Buy today. With a rating of Buy on the shares, the company has a 52-week high of $13.96. The one-year price target of $14.72 is higher than the opening price of $13.78, resulting a number of other analysts to issue statements on the company recently. Typically, after analysts assign an upgrade report on a stock, they will later issue periodic updates, usually followed by a price target change.

Shares of Brooks Automation Inc. (NASDAQ: BRKS) opened at $13.78 yesterday trading between $13.31 and $13.82, and last traded at $13.59, which is a jump of $0.33 or 0.02 compared to the previous closing price.

Brooks Automation Inc. (NASDAQ: BRKS) currently has a market cap of 898.57M.

Brooks Automation Inc.Trading Volume

The stock’s average daily volume is 245,192 shares out of a total float 64,364,000 and some 149,350 shares traded hands yesterday, below the average. Trading volume is likely to increase in the next few days as momentum traders often use increases in trading volume to pinpoint substantial volume accumulation or circulation by institutional investors.

As with all potential breakouts, investors watch for volume to be at least 40%-50% higher than 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.

Professional investors such as these have substantial teams of analysts researching thousands of stocks. So watching their interests is a good way to ensure you are buying the right stocks.

Brooks Automation Inc. 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.

Trades for Brooks Automation Inc. (NASDAQ: BRKS) have ranged from $8.33 – 13.96, and the stock now has a 50-day MA of $13.09 and 200-day MA of $11.59. Today’s last price is 0.03% lower than the 52 week high of $13.96.

Earnings growth is a crucial factor to look at when investing in stocks and investors identify companies that have raised their earnings at least 25% or more over a 3 year period.

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