Primoris Services Corp. (NASDAQ: PRIM) shares rose on Thursday Dec 1 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock and reiterated thier respective ratings.
Meanwhile, U.S. stocks opened with slight gains on Thursday.
The Dow Jones Industrial Average DJIA, +0.31% rose 38.22 points, or 0.2%, to 19,174, while the S&P 500 SPX, +0.01% added 2.1 points to 2,202, a rise of 0.1%.
The Nasdaq Composite Index COMP, -0.32% rose less than 1 point to 5,323, essentially unchanged on the day.
Analysts at KeyCorp reiterated a Hold rating on shares of Primoris Services Corp. (NASDAQ: PRIM) in a reserach note to investors, making it one of the more closely watched stocks on Wall Street. With a rating of Hold on the shares, Primoris Services Corp. has a 52-week high of $25.25. A number of other analysts have issued reports on the stock in recent days, and the company has secured a consensus one-year price target of $24.07, higher than the opening price of $22.96, a difference of 10.28 percent. Stock prices often trend to the upside on recommendations and new price targets of professional analysts.
Shares of Primoris Services Corp. (NASDAQ: PRIM) opened at $22.96 on Tuesday and has traded in a range between, $22.94 and $23.45, and last traded at $23.41, which represents a spike of $0.48 or 2.09% over the previous closing price.
Primoris Services Corp. (NASDAQ: PRIM) currently has a market cap of 1.21B.
Primoris Services Corp. (NASDAQ: PRIM) Average Daily Trading Volume
14,996 shares traded hands yesterday, lower than normal, out of a total float 37,433,000. Swing traders often use increases in trading volume to identify substantial volume aggregation or distribution by institutional investors, so trading volume is likely to increase in the next few days.
However, one day of heavy buy side trading is not enough to affirm a trend. So market traders will continue to look for institutional sponsorship as a cue 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.
Institutional investors such as these have teams of analysts that investigate thousands of stocks, so it is good corroboration to see them buying a stock you are considering.
Primoris Services Corp. (NASDAQ: PRIM) 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 following the activity of these professional investors and how they affect moving averages,it allows for traders to make more impactful judgments on trades.
With that in mind, Primoris Services Corp. (NASDAQ: PRIM) now has a 50-day MA of $21.06 and 200-day MA of $19.86. It has traded in a 52-week range between $16.13 – 25.25 and today’s last price is 7.29%% lower than the 52 week high of $25.25.
Indeed, earnings growth is among the most important 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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