Tower Semiconductor Ltd. (NASDAQ: TSEM) shares were down on Tuesday February 14 on lighter trade volume than normal after a number of analysts weighed in on the investing value of the stock, boosting the price target of stock.
Meanwhile U.S. stocks opened slightly lower on Tuesday. The main three benchmarks retreated after touching the latest in a series of record highs on Monday, with the S&P 500 index SPX, -0.09% down two points, or 0.1%, to 2,326.
The Dow Jones Industrial Average DJIA, -0.02% fell 34 points, or 0.2%, to 20,381. The Nasdaq Composite Index COMP, -0.13% shed eight points, or 0.1%, to 5,756.
Tower Semiconductor Ltd. (NASDAQ: TSEM) had its price target boosted by equities researchers at Needham & Company LLC from $25.00 to $30.00. With a rating of Strong-Buy on the stock, Tower Semiconductor Ltd. has a 52-week high of $23.00. The one-year price target of $27.50 is above the opening price of $22.66, that has caused a number of other analysts to comment on the company recently.
Yesterday Tower Semiconductor Ltd. (NASDAQ: TSEM) shares last traded at $22.45, which is a drop of $0.11 from the previous closing price. Opening at $22.66, they ranged from $22.44 and $22.77 throughout the day.
Tower Semiconductor Ltd. (NASDAQ: TSEM) now has a market cap of 1.97B.
Tower Semiconductor Ltd. (NASDAQ: TSEM) Average Daily Trading Volume
The stock’s average daily volume is 848,371 shares out of a total float 76,759,000 and some 168,422 shares crossed the trading desk yesterday, 35 percent below the average. lower than normal. Look for trading volume to pick up in the coming days as investors often use swings in trading volume to identify heavy volume accumulation or distribution by institutional investors.
While increased trading for short periods will not mean much 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 signal to market traders that institutions may be moving in, so institutional sponsorship is very important.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these retain substantial teams of analysts researching thousands of stocks. Thus, watching their interests is a good way to make sure you are buying the right stocks.
Tower Semiconductor Ltd. (NASDAQ: TSEM) 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 successful trades.
With that in mind, Tower Semiconductor Ltd. (NASDAQ: TSEM) now has a 50-day MA of $20.61 and 200-day MA of $17.30. It has traded in a 52-week range between $11.03 – 23.00 and today’s last price is 2.39%% lower than the 52 week high of $23.00.
Earnings growth is an important factor to consider when investing in stocks and investors identify companies that have raised their earnings by at least 25% for the past 3 years.
DISCLOSURE: The views and opinions expressed in this article do not represent the views of the website. Readers should not consider statements made by the author as formal recommendations and should consult their financial adviser before making any investment decisions. To read our full disclosure, please see our terms and conditions page.