U.S. Silica Holdings Inc. (SLCA) Shares Active after Upgrade at Zacks Investment Research

U.S. Silica Holdings Inc. (NYSE: SLCA) shares rose in value Thursday Dec 15 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.

Analysts at Zacks Investment Research upgraded shares of U.S. Silica Holdings Inc. (NYSE: SLCA) from Hold to Buy today. With a rating of Buy on the stock, the company has a 52-week high of $56.05. A number of other analysts have commented on the stock recently, and the company has secured a consensus one-year price target of $55.86, above the opening price of $49.85, a difference of 10.96 percent. Share prices sometimes get a jump to the upside when analysts upgrade a stock.

U.S. Silica Holdings Inc. (NYSE: SLCA) shares last traded at $50.96, which represents a spike of $0.76 or 1.51% from the previous closing price. Opening at $49.85, they fluctuated from $49.69 and $51.23 throughout the day.

U.S. Silica Holdings Inc. (NYSE: SLCA) currently has a market cap of 3.60B.

U.S. Silica Holdings Inc. (NYSE: SLCA) Average Daily Trading Volume

The stock’s average daily volume is 1,999,810 shares out of a total float 70,406,000 and some 129,840 shares traded hands yesterday, lower than the average. Momentum traders often use swings in trading volume to determine substantial volume accumulation or distribution by institutional investors, so trading volume is likely to increase in the next few days.

As with all possible breakouts, investors look for volume to be at least 40%-50% higher 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 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.

U.S. Silica Holdings Inc. (NYSE: SLCA) 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.

Traders can make educated trades when they follow the activity of professional investors.

Trades for U.S. Silica Holdings Inc. (NYSE: SLCA) have ranged from $13.54 – 56.05, and the stock now has a 50-day MA of $48.09 and 200-day MA of $41.39. Today’s last price is 9.08%% below the 52 week high of $56.05.

Earnings growth is an important factor to research when buying stocks and investors identify companies that have been successful at growing their earnings by at least 25% over 3 consecutive years.

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