USA Truck, Inc. (NASDAQ: USAK) shares rose in value on Wednesday February 8 on 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 traded modestly lower on Wednesday, as losses in energy shares following a drop in oil prices and a slide in financials weighed on the main indexes.
The S&P 500 index SPX, -0.17% declined 6 points, or 0.3%, to 2,286, with six of the main sectors trading lower. Energy and financials were leading the losses, down more than 1%.
The Dow Jones Industrial Average DJIA, -0.26% was down 65 points, or 0.3%, to 20,021, a day after the blue-chip index set an intraday high at 10,155.35. The Nasdaq Composite COMP, -0.13% retreated from an all-time high set on Tuesday, falling 23 points, or 0.4%, to 5,650.
Analysts at Avondale Partners upgraded shares of USA Truck, Inc. (NASDAQ: USAK) from Underperform to Market Perform today. Avondale Partners currently has a rating of Market Perform on the shares. The one-year price target of $9.38 is higher than the opening price of $7.69, resulting a number of other analysts to issue statements on the company recently. Looking back over the last 52 weeks, USA Truck, Inc. stock has a high of $21.46. Stock prices sometimes get a bounce to the upside when analysts upgrade a stock.
Shares of USA Truck, Inc. (NASDAQ: USAK) opened at $7.69 yesterday and traded in a range between, $6.95 and $7.78, and last traded at $7.32, a spike of $0.37 compared to the previous closing price.
USA Truck, Inc. (NASDAQ: USAK) currently has a market cap of 59.07M.
USA Truck, Inc. (NASDAQ: USAK) Average Daily Trading Volume
23,004 shares traded hands yesterday, 3 percent lower than the norm, out of a total float 5,489,000. lower than normal. Look for trading volume to pick up in the coming days as investors often use upticks in trading volume to identify heavy volume accumulation or distribution by institutional investors.
However, a single day of heavy buy side trading is not enough to assert a trend. As such, market traders will continue to watch for institutional sponsorship as a signal that financial institutions are moving forward.
Institutional sponsorship commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these have substantial teams of analysts that research thousands of stocks. So watching their interests is a good way to ensure you are buying the right stocks.
USA Truck, Inc. (NASDAQ: USAK) 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 winning trades.
Trades for USA Truck, Inc. (NASDAQ: USAK) have ranged from $6.85 – 21.46, and the stock now has a 50-day MA of $9.12 and 200-day MA of $10.38. Today’s last price is 65.89%% under the 52 week high of $21.46.
Earnings growth is a critical factor to research when buying stocks and investors watch for companies that have increased their earnings by at least 25% over 3 consecutive years.
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