QuickLogic Corp. (QUIK) Stock Moves Down and Here’s Why

QuickLogic Corp. (NASDAQ: QUIK) shares rose on Tuesday Dec 13 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a downgraded rating.

Meanwhile, the Dow DJIA, +0.47% climbed 106 points, or 0.6%, to 19,905. If the Dow finishes higher, it will notch its seventh straight gain.

The S&P 500 index SPX, +0.56% gained 10.45 points, or 0.5%, to 2,267 and the tech-heavy Nasdaq Composite Index COMP, +1.02% added 48 points, or 0.9%, to 5,461.

Both the S&P 500 index SPX, +0.56% and Nasdaq Composite COMP, +1.02% ended lower on Monday, with investors appearing reluctant to push shares higher ahead of the Fed meeting

Shares of QuickLogic Corp. (NASDAQ: QUIK) were downgraded by analysts at Zacks Investment Research in a note to their investors today. With a rating of Sell on the stock, the company has a 52-week high of $1.66. A number of other analysts have spoken on the stock in recent days, and the company has secured a consensus one-year price target of $2.25, above the opening price of $0.93. Downgrades are more likely when analysts feel that the future prospects for the security have weakened from the original recommendation, usually caused by a considerable and crucial change in the company’s actions, future vision or industry.

Shares of QuickLogic Corp. (NASDAQ: QUIK) opened at $0.93 on Tuesday trading between $0.93 and $0.94, and last traded at $0.94, which is a spike of $0.01 or 1.53% over the previous closing price.

QuickLogic Corp. (NASDAQ: QUIK) currently has a market cap of 63.72M.

QuickLogic Corp. (NASDAQ: QUIK) Average Daily Trading Volume

The stock’s average daily volume is 194,723 shares out of a total float 67,077,000 and some 20,265 shares crossed the trading desk yesterday, below the norm. Trading volume is likely to increase in the next few days as swing traders often use upticks in trading volume to pinpoint large volume accumulation or circulation by institutional investors.

While an increase in trading for one day will not mean much, however, a trend of heavy trading volume on the buy side over a period of days or weeks sends a positive cue to market traders that institutions may be moving in, so institutional sponsorship is critical.

Institutional sponsorship commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.

Professional investors such as these retain substantial teams of analysts researching thousands of stocks. Thus, watching their interests is a good way to ensure you are buying the right stocks.

QuickLogic Corp. (NASDAQ: QUIK) 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 marking the activity of these professional investors and how they influence moving averages, traders can make smarter trades.

With that in mind, QuickLogic Corp. (NASDAQ: QUIK) now has a 50-day MA of $0.86 and 200-day MA of $0.89. It has traded in a 52-week range between $0.75 – 1.66 and today’s last price is 43.34%% lower than the 52 week high of $1.66.

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

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