Ciena Corp. (NYSE: CIEN) shares rose in value Monday Nov 14 with heavier trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile as investors continued to try and decipher policy proposals of President-elect Donald Trump’s administration, the Dow Jones Industrial Average DJIA, +0.11% rose 21.03 points, or 0.1%, to finish at 18,868.69, its third straight record close.
The blue-chip index had also touched a historic high of 18,934.05 during the session.
The S&P 500 index SPX, -0.01% fell 0.25 points to end at 2,164.20, and the Nasdaq Composite COMP, -0.36% dropped 18.72 points, or 0.4%, to close at 5,218.40.
Analysts at Deutsche Bank AG upgraded shares of Ciena Corp. (NYSE: CIEN) from Hold to Buy today. With a rating of Buy on the stock, the company has a 52-week high of $25.46. A number of other analysts have spoken on the company recently, and the company has secured a consensus one-year price target of $26.44, higher than the opening price of $22.27, a difference of 11.75 percent. Share prices often shift to the upside on recommendations and new price targets of professional analysts.
Shares of Ciena Corp. (NYSE: CIEN) opened at $22.27 on Monday and traded in a range between, $22.06 and $22.75, and last traded at $22.50, which represents a spike of $0.76 or 3.50% from the previous closing price.
Ciena Corp. (NYSE: CIEN) currently has a market cap of 3.14B.
Ciena Corp. (NYSE: CIEN) Average Daily Trading Volume
3,542,598 shares traded hands yesterday, above normal, out of a total float 136,498,000. Considerable volume aggregation by institutional investors may be in the near future as the combination of significant gains in trading volume and price growth can be indicative factors.
While higher trading for short periods will not mean much, conversely, a trend of heavy trading volume on the buy side over a period of days or weeks expresses a positive signal to market traders that institutions may be moving in, so institutional sponsorship is very important.
Institutional sponsorship simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors retain substantial teams of analysts researching thousands of stocks, so it is good corroboration to see them buying a stock you’re considering.
Ciena Corp. (NYSE: CIEN) 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.
Trades for Ciena Corp. (NYSE: CIEN) have ranged from $15.62 – 25.46, and the stock now has a 50-day MA of $20.85 and 200-day MA of $19.92. Today’s last price is 11.63%% under the 52 week high of $25.46.
Earnings growth is an important factor to look at when investing in stocks and investors identify companies that have increased their earnings at least 25% or more over 3 consecutive years.
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