Globus Medical Inc. (NYSE: GMED) shares rose on Wednesday Nov 30 with lighter trade volume than normal after more analysts initiated coverage on the stock.
Meanwhile, the Dow Jones Industrial Average hit an intraday record after opening higher Wednesday, led by the energy sector as hopes rose that the world’s major oil producers are near a deal on limiting output.
The benchmark S&P 500 and Dow were on track to post their largest monthly gains since March.
The S&P 500 SPX, +0.22% gained 5 points, or 0.2%, to 2,209. The Dow Jones Industrial Average DJIA, +0.41% added 62 points, or 0.3%, to 19,184, trading in record territory. The Nasdaq Composite COMP, -0.08% was 7 points, or 0.1%, higher at 5,386.
Analysts at Aegis initiated coverage on Globus Medical Inc. (NYSE: GMED) stock, rating the company at Buy. The company currently has a rating of Buy on the stock. The one-year price target of $24.33 is above the opening price of $21.91, resulting a number of other analysts to comment on the company in recent days. Looking back over the last 52 weeks, Globus Medical Inc. stock has a high of $28.60. After beginning or initiating coverage, analysts and brokerage firms will subsequently issue periodic updates. Changes in price targets are not uncommon.
Shares of Globus Medical Inc. (NYSE: GMED) opened at $21.91 on Tuesday and has traded in a range between, $21.54 and $22.00, and last traded at $21.77, which is a jump of $0.06 or 0.28% from the previous closing price.
Globus Medical Inc. (NYSE: GMED) currently has a market cap of 2.09B.
Globus Medical Inc. (NYSE: GMED) Average Daily Trading Volume
The stock’s average daily volume is 818,231 shares out of a total float 60,908,000 and some 58,382 shares crossed the trading desk yesterday, lower than normal. Momentum traders often use upticks in trading volume to determine large volume aggregation or circulation by institutional investors, so look for trading volume to pick up in the coming days.
However, a single day of heavy buy side trading is not enough to assert a trend. So market traders will continue to watch for institutional sponsorship as a cue that financial institutions are moving forward.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these have substantial teams of analysts researching thousands of stocks, so it is good confirmation to see them buying a stock you are considering.
Globus Medical Inc. (NYSE: GMED) 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 influence moving averages, traders are able to make make educated trades.
With that in mind, Globus Medical Inc. (NYSE: GMED) now has a 50-day MA of $22.06 and 200-day MA of $23.24. It has traded in a 52-week range between $19.25 – 28.60 and today’s last price is 23.88%% lower than the 52 week high of $28.60.
Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors look for companies that have been successful at growing their earnings by at least 25% over the past 3 years.
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