SBA Communications Corp. (NASDAQ: SBAC) shares closed lower on Tuesday Dec 6 with lighter trade volume than normal after more analysts initiated coverage on the stock.
Meanwhile, U.S. stocks looked for direction on Tuesday with the Dow industrials trying for a fresh record a day after closing at an all-time high in the previous session.
The Dow Jones Industrial Average DJIA, -0.08% opened little-changed at 19,221, the S&P 500 index SPX, -0.01% climbed 2 points, or 0.1%, at 2,206, while the Nasdaq Composite Index COMP, +0.20%
Analysts at Macquarie initiated coverage on SBA Communications Corp. (NASDAQ: SBAC) stock, starting the company at Neutral. The company currently has a rating of Neutral on the stock. As a means of comparison, a number of other analysts have commented on the stock recently, and the company has secured a consensus one-year price target of $129.57, higher than the opening price of $97.46. SBA Communications Corp. stock has a 52-week high of $118.57. Analysts and brokerage firms will subsequently re periodic updates after initiating coverage,. Changes in price targets are not uncommon.
SBA Communications Corp. (NASDAQ: SBAC) shares last traded at $97.71, which is a dip of $0.35 per share or -0.36% compared to the previous closing price. Opening at $97.46, they fluctuated from $97.16 and $98.95 throughout the day.
SBA Communications Corp. (NASDAQ: SBAC) now has a market cap of 12.12B.
SBA Communications Corp. (NASDAQ: SBAC) Average Daily Trading Volume
The stock’s average daily volume is 1,111,870 shares out of a total float 122,978,000 and some 55,238 shares crossed the trading desk yesterday, lower than the average. Swing traders often use increases in trading volume to pinpoint large volume aggregation or dissemination by institutional investors, so trading volume is likely to increase in the next few days.
While increased trading for short periods will not mean much, conversely, 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 crucial.
Institutional sponsorship commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors have teams of analysts that research thousands of stocks, so it is good confirmation to see them buying a stock you’re researching.
SBA Communications Corp. (NASDAQ: SBAC) 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.
With that in mind, SBA Communications Corp. (NASDAQ: SBAC) now has a 50-day MA of $105.34 and 200-day MA of $108.50. It has traded in a 52-week range between $82.80 – 118.57 and today’s last price is 17.59%% lower than the 52 week high of $118.57.
Earnings growth is a critical factor to look at when buying stocks and investors identify companies that have raised their earnings at least 25% or more over a 3 year period.
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