Synnex Corp. (NYSE: SNX) 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 with a downgraded rating.
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 Zacks Investment Research downgraded shares of Synnex Corp. (NYSE: SNX) from Buy to Hold in a research note to investors today. The company currently has a rating of Hold on the shares. As a means of comparison, a number of other analysts have spoken on the company in recent days, and Synnex Corp. has earned a consensus one-year price target of $112.00, less than the opening price of $116.95, a difference of 9.54 percent. Synnex Corp. stock has a 52-week high of $118.80. Downgrades happen when analysts consider that the future prospects for the security have weakened from the initial recommendation, usually because of a considerable and major change in the company’s operations, future outlook or industry.
Synnex Corp. (NYSE: SNX) shares last traded at $117.43, a spike of $0.52 or 0.44% over the previous closing price. Opening at $116.95, they varied from $116.67 and $117.98 throughout the day.
Synnex Corp. (NYSE: SNX) currently has a market cap of 4.67B.
Synnex Corp. (NYSE: SNX) Average Daily Trading Volume
8,844 shares traded hands yesterday, lower than the average, out of a total float 29,177,000. Look for trading volume to pick up in the coming days as investors often use upticks in trading volume to pinpoint heavy volume accumulation or circulation by institutional investors.
As with all possible breakouts, investors look for volume to be at least 40%-50% greater than normal on the breakout to demonstrate that fund managers and other professional investors are jumping in.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors have substantial teams of analysts that investigate thousands of stocks, so it is good validation to see them buying a stock you’re researching.
Synnex Corp. (NYSE: SNX) 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 investors to make those trends work in their favor and increase the number of winning trades.
With that in mind, Synnex Corp. (NYSE: SNX) now has a 50-day MA of $107.44 and 200-day MA of $101.43. It has traded in a 52-week range between $75.87 – 118.80 and today’s last price is 1.15%% lower than the 52 week high of $118.80.
Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors seek companies that have been successful at growing their earnings by at least 25% for 3 consecutive years.
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