SecureWorks Corp. (NASDAQ: SCWX) shares fell back in value Wednesday Dec 14 with lighter trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile, U.S. equities traded mostly lower on Wednesday as investors awaited the Federal Reserve’s latest decision regarding monetary policy.
The Dow Jones industrial average traded 35 points lower, with Goldman Sachs contributing the most losses. The S&P 500 traded 0.1 percent lower, with financials leading decliners. The Nasdaq composite, meanwhile, held flat.
Analysts at Zacks Investment Research upgraded shares of SecureWorks Corp. (NASDAQ: SCWX) from Hold to Buy today. With a rating of Buy on the shares, SecureWorks Corp. has a 52-week high of $16.23. A number of other analysts have commented on the stock in recent days, and SecureWorks Corp. has earned a consensus one-year price target of $15.55, higher than the opening price of $10.90, a difference of 14.68 percent. Stock prices sometimes get a boost to the upside when analysts upgrade a stock.
Shares of SecureWorks Corp. (NASDAQ: SCWX) opened at $10.90 on Tuesday and has traded in a range between, $10.59 and $10.99, and last traded at $10.59, which is a dip of $0.32 per share or -2.96% over the previous closing price.
SecureWorks Corp. (NASDAQ: SCWX) currently has a market cap of 854.06M.
SecureWorks Corp. (NASDAQ: SCWX) Average Daily Trading Volume
4,382 shares traded hands yesterday, below the average, out of a total float 9,687,000. Swing traders often use upticks in trading volume to identify large volume growth or dissemination by institutional investors, so look for trading volume to pick up in the coming days.
However, just a day of heavy buy side trading is not enough to assert a trend. As such, 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.
Professional investors such as these retain teams of analysts researching thousands of stocks, so it is good validation to see them buying a stock you’re researching.
SecureWorks Corp. (NASDAQ: SCWX) 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,it allows for traders to make more effective judgments on trades.
With that in mind, SecureWorks Corp. (NASDAQ: SCWX) now has a 50-day MA of $12.01 and 200-day MA of $13.24. It has traded in a 52-week range between $10.50 – 16.2300 and today’s last price is 34.77%% lower than the 52 week high of $16.23.
Earnings growth is an important factor to consider when investing in stocks and investors seek companies that have been successful at growing their earnings by at least 25% over the past 3 years.
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