Pan American Silver Corp. (NASDAQ: PAAS) shares rose in value in early trading today on lighter trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Analysts at Deutsche Bank AG upgraded shares of Pan American Silver Corp. (NASDAQ: PAAS) from Hold to Buy today. With a rating of Buy on the stock, the company has a 52-week high of $21.59. The one-year price target of $20.96 is above the opening price of $17.75, resulting a number of other analysts to report on the stock recently. Typically, after analysts issue an upgrade report on a stock, they will later issue periodic revisions, often followed by a price target change.
Meanwhile, US stock opened lower amid concerns surrounding the U.S. Department of Justice’s probe into Deutsche Bank AG.
The S&P 500 SPX, -0.25% slipped 5 points, or 0.2%, to 2,162.
The Dow industrials DJIA, -0.26% fell 55 points, or 0.3%, to 18,252.
The Nasdaq Composite COMP, -0.11% was off 13 points, or 0.3%, to 5,298
Shares of Pan American Silver Corp. (NASDAQ: PAAS) opened at $17.75 yesterday trading between $17.58 and $18.08, and last traded at $17.68, a spike of $0.06 or 0.00 compared to the previous closing price.
Pan American Silver Corp. (NASDAQ: PAAS) currently has a market cap of 2.69B.
Pan American Silver Corp.Trading Volume
The stock’s average daily volume is 2,841,120 shares out of a total float 148,824,000 and some 475,304 shares crossed the trading desk yesterday, below the norm. Investors often use upticks in trading volume to pinpoint large volume accumulation or distribution 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% higher than normal on the breakout to show that fund managers and other professional investors are jumping in.
Institutional sponsorship just refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors retain teams of analysts that investigate thousands of stocks, so it is good validation to see them taking a postion in a stock you are considering.
Pan American Silver Corp. 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 tracking the activity of these professional investors—and the moving averages they affect—it allows for traders to make more effective choices on trades.
Trades for Pan American Silver Corp. (NASDAQ: PAAS) have ranged from $5.38 – 21.59, and the stock now has a 50-day MA of $18.60 and 200-day MA of $16.01. Today’s last price is 0.18% under the 52 week high of $21.59.
Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors look for companies that have grown their earnings at least 25% or more for the past 3 years.
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