Star Bulk Carriers Corp. (SBLK) Shares Active after Upgrade at Zacks Investment Research

Zacks Investment Research (Star Bulk Carriers Corp.: NASDAQ) shares fell back in value Wednesday Dec 28 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. stocks were little changed on Wednesday, as investors found few reasons to keep pushing shares higher towards the 20,000 mark.

The Dow Jones Industrial Average DJIA, -0.11% rose 3.1 points to 19,949, essentially unchanged on the day. The S&P 500 SPX, -0.39% lost 3 points, or 0.1%, to 2,266 while the Nasdaq Composite Index COMP, -0.59% slipped 6.4 points, or 0.1%, to 5,482.

Analysts at Zacks Investment Research upgraded shares of Zacks Investment Research (Star Bulk Carriers Corp.: NASDAQ) from Hold to Buy today. With a rating of Buy on the stock, the company has a 52-week high of $6.10. 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 $5.67, higher than the opening price of $5.19. Stock prices sometimes get a jump to the upside when analysts upgrade a stock.

Zacks Investment Research (Star Bulk Carriers Corp.: NASDAQ) shares last traded at $5.16, which represents a dip of $0.06 per share or -1.15% from the previous closing price. Opening at $5.19, they varied from $5.16 and $5.24 throughout the day.

Zacks Investment Research (Star Bulk Carriers Corp.: NASDAQ) now has a market cap of 235.99M.

Zacks Investment Research (Star Bulk Carriers Corp.: NASDAQ) Average Daily Trading Volume

The stock’s average daily volume is 359,025 shares out of a total float 14,591,000 and some 8,988 shares traded hands yesterday, below the average. Look for trading volume to pick up in the coming days as investors often use increases in trading volume to pinpoint heavy volume aggregation or circulation by institutional investors.

While higher trading for short periods will not mean much, however, a trend of heavy trading volume on the buy side over a series of days or weeks expresses a positive signal to market traders that institutions may be moving in, so institutional sponsorship is crucial.

Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.

These instituitional investors have teams of analysts researching thousands of stocks, so it is good confirmation to see them buying a stock you are considering.

Zacks Investment Research (Star Bulk Carriers Corp.: NASDAQ) 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 identifying trends, moving averages allow traders to make those trends work in their favor and increase the number of successful trades.

With that in mind, Zacks Investment Research (Star Bulk Carriers Corp.: NASDAQ) now has a 50-day MA of $5.23 and 200-day MA of $4.43. It has traded in a 52-week range between $1.57 – 6.10 and today’s last price is 15.41%% lower than the 52 week high of $6.10.

Earnings growth is a critical factor to research when buying stocks and investors look for companies that have increased their earnings at least 25% or more over the past 3 years.

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