GigPeak Inc (NYSE: GIG) Rating Reiterated at Needham & Company LLC

Analysts at Needham & Company LLC reiterated a Buy rating on shares of GigPeak Inc (NYSE: GIG) in a reserach note to investors, making it one of the more actively watched stocks on Wall Street. The company currently has a rating of Buy on the stock. The one-year price target of $3.40 is higher than the opening price of $2.22, causing a fair amount of other analysts to comment on the company recently. Looking back over the last 52 weeks, GigPeak Inc stock has a high of $3.42. Share prices often shift to the upside on recommendations and new price targets of professional brokerage firms.

U.S. stocks closed higher Tuesday as investors anticipate the results of meetings from the Federal Reserve and the Bank of Japan.

The Dow Jones Industrial Average DJIA, +0.05% rose 9.79 points, or less than 0.1%, to close at 18,129.96.

The S&P 500 index SPX, +0.03% advanced 0.64 points to finish at 2,139.76, led by gains in the health-care and consumer-staples sectors.

The Nasdaq Composite index COMP, +0.12% gained 6.33 points, or 0.1%, to close at 5,241.35.

Yesterday GigPeak Inc (NYSE: GIG) shares last traded at $2.28, which represents an increase of $0.06 from the previous closing price. Opening at $2.22, they varied from $2.21 and $2.29 throughout the day.

GigPeak Inc (NYSE: GIG) now has a market cap of 153.81M.

The stock’s average daily volume is 691,083 shares out of a total float 63,738,000 and some 472,371 shares crossed the trading desk yesterday, 51 percent below the average. Momentum traders often use increases in trading volume to pinpoint substantial volume aggregation or dissemination by institutional investors, so trading volume is likely to increase in the next few days.

As with all potential 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 is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.

These professional investors have substantial teams of analysts researching thousands of stocks, so it is good corroboration to see them buying a stock you’re researching.

By spotting trends, moving averages allow investors to make those trends work in their favor and increase the number of winning trades.

With that in mind, GigPeak Inc (NYSE: GIG) now has a 50-day MA of $2.05 and 200-day MA of $2.31. It has traded in a 52-week range between $1.63 – 3.42 and today’s last price is 0.33% lower than the 52 week high of $3.42.

Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors seek companies that have grown their earnings at least 25% or more for the past 3 years.

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