Meridian Bancorp, Inc. (NASDAQ: EBSB) shares rose on Tuesday February 7 on lower trade volume than normal after a number of analysts weighed in on the investing value of the stock, increasing the price target of stock.
U.S. stocks were up in early trade on Tuesday which could put the equity market on track to set new records.
Investors were focusing on earnings, with GM and Michael Kors making moves after reporting early.
S&P 500 futures ESH7, +0.31% rose 7 points, or 0.3%, to 2,293.50, while Dow Jones Industrial Average futures YMH7, +0.46% tacked on 70 points, or 0.4%, to 20,042. Nasdaq-100 futures NQH7, +0.48% added 14 points, or 0.3%, to 5,171.75.
Meridian Bancorp, Inc. (NASDAQ: EBSB) had its price target raised by equities researchers at Piper Jaffray Companies from $0.00 to $20.00. The company currently has a rating of on the stock. The one-year price target of $19.00 is higher than the opening price of $18.75, that has caused a number of other analysts to issue statements on the company in recent days. Looking back over the last year, Meridian Bancorp, Inc. stock has a high of $20.55.
Shares of Meridian Bancorp, Inc. (NASDAQ: EBSB) opened at $18.75 yesterday and traded in a range between, $18.60 and $18.75, and last traded at $18.65, which is a jump of $0.05 compared to the previous closing price.
Meridian Bancorp, Inc. (NASDAQ: EBSB) now has a market cap of 950.03M.
Meridian Bancorp, Inc. (NASDAQ: EBSB) Average Daily Trading Volume
15,846 shares traded hands yesterday, 102 percent lower than normal, out of a total float 49,275,000. lower than normal. Look for trading volume to pick up in the coming days as investors often use increases 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 just refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors have teams of analysts researching thousands of stocks. Thus, watching their interests is a good way to ensure you are buying the right stocks.
Meridian Bancorp, Inc. (NASDAQ: EBSB) 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.
With that in mind, Meridian Bancorp, Inc. (NASDAQ: EBSB) now has a 50-day MA of $18.79 and 200-day MA of $16.72. It has traded in a 52-week range between $13.14 – 20.55 and today’s last price is 9.25%% lower than the 52 week high of $20.55.
Earnings growth is a critical factor to look at when investing in stocks and investors seek companies that have increased their earnings at least 25% or more over a 3 year period.
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