Exar Corporation (NYSE: EXAR) shares rose on Monday February 13 on lighter trade volume than normal after a number of analysts weighed in on the investing value of the stock, boosting the price target of stock.
Meanwhile U.S. stock-market indexes opened higher on Monday, setting intraday all-time highs shortly after market open. The S&P 500 SPX, +0.35% opened up 6 points, or 0.2%, at 2,322.
The Nasdaq Composite COMP, +0.44% began the session up 18 points, or 0.3% higher at 5,752. The Dow Jones Industrial Average DJIA, +0.51% added 64 points or 0.3%, to 20,340 at the open.
Exar Corporation (NYSE: EXAR) had its price target raised by equities researchers at Cowen and Company from $11.00 to $13.00. The company currently has a rating of Buy on the shares. The one-year price target of $12.00 is higher than the opening price of $11.01, that has caused a fair amount of other analysts to issue statements on the company in recent days. Looking back over the last 52 weeks, Exar Corporation stock has a high of $11.09.
Yesterday Exar Corporation (NYSE: EXAR) shares last traded at $11.05, which is a jump of $0.13 over the previous closing price. Opening at $11.01, they ranged from $10.98 and $11.09 throughout the day.
Exar Corporation (NYSE: EXAR) now has a market cap of 562.33M.
Exar Corporation (NYSE: EXAR) Average Daily Trading Volume
26,179 shares crossed the trading desk yesterday, 103 percent lower than normal, out of a total float 50,159,000. lower than normal. Look for trading volume to pick up in the coming days as investors often use swings in trading volume to identify heavy volume accumulation or distribution by institutional investors.
However, a single day of heavy buy side trading is not enough to assert a trend. As such, market traders will continue to watch for institutional sponsorship as a signal 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.
Professional investors such as these retain teams of analysts researching thousands of stocks, so it is good confirmation to see them taking a postion in a stock you’re researching.
Exar Corporation (NYSE: EXAR) 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 identifying trends, moving averages allow investors to make those trends work in their favor and increase the number of successful trades.
Trades for Exar Corporation (NYSE: EXAR) have ranged from $4.94 – 11.09, and the stock now has a 50-day MA of $10.50 and 200-day MA of $9.60. Today’s last price is 0.36%% lower than the 52 week high of $11.09.
Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors watch for companies that have grown their earnings by at least 25% over the past 3 years.
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