Ericsson (NASDAQ: ERIC) shares rose in value Thursday Dec 15 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Analysts at Danske upgraded shares of Ericsson (NASDAQ: ERIC) from to Buy today. With a rating of Buy on the shares, Ericsson has a 52-week high of $10.20. As a means of comparison, a number of other analysts have spoken on the stock in recent days, and the company has secured a consensus one-year price target of $5.21, a decrease compared to the opening price of $5.85, a difference of 8.86 percent. Stock prices sometimes get a spike to the upside when analysts upgrade a stock.
Ericsson (NASDAQ: ERIC) shares last traded at $5.88, which represents a spike of $0.15 or 2.62% compared to the previous closing price. Opening at $5.85, they fluctuated from $5.84 and $5.88 throughout the day.
Ericsson (NASDAQ: ERIC) currently has a market cap of 18,048.05B.
Ericsson (NASDAQ: ERIC) Average Daily Trading Volume
The stock’s average daily volume is 7,705,970 shares out of a total float 3,088,190,000 and some 773,921 shares crossed the trading desk yesterday, lower than the average. Trading volume is likely to increase in the next few days as investors often use increases in trading volume to identify large volume aggregation or circulation by institutional investors.
However, just a day of high volume buy side trading is not enough to affirm a trend. As such, market traders will continue to look for institutional sponsorship as an indicator that financial institutions are moving forward.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors have substantial teams of analysts that research thousands of stocks, so it is good validation to see them taking a postion in a stock you are researching.
Ericsson (NASDAQ: ERIC) 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 winning trades.
Trades for Ericsson (NASDAQ: ERIC) have ranged from $4.83 – 10.20, and the stock now has a 50-day MA of $5.16 and 200-day MA of $6.64. Today’s last price is 42.35%% below the 52 week high of $10.20.
Earnings growth is an important factor to look at when investing in stocks and investors seek companies that have raised their earnings at least 25% or more for 3 consecutive 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.