Applied Micro Circuits Corp. (NASDAQ: AMCC) shares rose on Tuesday Nov 22 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, The Dow Jones Industrial Average opened opened higher, trading above 19,000 for the first time ever, while the S&P 500 traded above 2,200 shortly after the opening bell on Tuesday.
The S&P 500 SPX, +0.17% opened 5 points, or 0.2%, higher at 2,202. The Dow Jones Industrial Average DJIA, +0.20% added 45 points, or 0.2%, to 19,002. The Nasdaq Composite COMP, +0.25% began the session up 16 points, or 0.3%, at 5,385.
Analysts at Canaccord Genuity downgraded shares of Applied Micro Circuits Corp. (NASDAQ: AMCC) from Buy to Hold in a research note to investors today. Canaccord Genuity currently has a rating of Hold on the stock. As a means of comparison, a number of other analysts have issued reports on the stock in recent days, and Applied Micro Circuits Corp. has earned a consensus one-year price target of $8.43, higher than the opening price of $8.15. Applied Micro Circuits Corp. stock has a 52-week high of $8.25. Downgrades happen when analysts consider that the future prospects for the security have weakened from the initial recommendation, often caused by a considerable and fundamental change in the company’s operations, future direction or industry.
Applied Micro Circuits Corp. (NASDAQ: AMCC) shares last traded at $8.13, which is a spike of $0.03 or 0.31% compared to the previous closing price. Opening at $8.15, they varied from $8.05 and $8.15 throughout the day.
Applied Micro Circuits Corp. (NASDAQ: AMCC) now has a market cap of 702.43M.
Applied Micro Circuits Corp. (NASDAQ: AMCC) Average Daily Trading Volume
The stock’s average daily volume is 580,135 shares out of a total float 76,948,000 and some 316,799 shares traded hands yesterday, lower than the average. Momentum traders often use upticks in trading volume to pinpoint substantial volume growth or dissemination 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 show 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 instituitional investors have teams of analysts researching thousands of stocks, so it is good validation to see them buying a stock you are considering.
Applied Micro Circuits Corp. (NASDAQ: AMCC) 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 tracking the activity of these professional investors and how they affect moving averages,it allows for traders to make more useful choices on trades.
With that in mind, Applied Micro Circuits Corp. (NASDAQ: AMCC) now has a 50-day MA of $6.84 and 200-day MA of $6.76. It has traded in a 52-week range between $4.93 – 8.250 and today’s last price is 1.52%% lower than the 52 week high of $8.25.
Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors identify companies that have grown their earnings by at least 25% for the past 3 years.
DISCLOSURE: The views and opinions expressed in this article are those of the authors, and 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.