Globus Medical Inc. (NYSE: GMED) shares rose in value Thursday Nov 17 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile, stocks opened flat this morning, struggling for direction in early trade ahead of congressional testimony by Federal Reserve Chairwoman Janet Yellen. Ahead of an appearance before the Joint Economic Committee, Yellen said an interest-rate hike could come “relatively soon,”
The S&P 500 SPX, +0.25% fell less than 0.1% to 2,176.85 while Dow Industrials DJIA, -0.05% fell 9 points to 18,858. The Nasdaq Composite COMP, +0.18% declined 0.1% to 5,291.48.
Analysts at Zacks Investment Research upgraded shares of Globus Medical Inc. (NYSE: GMED) from Sell to Hold today. The company currently has a rating of Hold on the stock. The one-year price target of $24.33 is higher than the opening price of $21.04, that has caused a number of other analysts to issue statements on the company in recent days. Looking back over the last 52 weeks, Globus Medical Inc. stock has a high of $28.60. Share prices sometimes get a spike to the upside when analysts upgrade a stock.
Globus Medical Inc. (NYSE: GMED) shares last traded at $21.02, which represents a jump of $0.07 or 0.33% from the previous closing price. Opening at $21.04, they fluctuated from $20.97 and $21.16 throughout the day.
Globus Medical Inc. (NYSE: GMED) currently has a market cap of 2.01B.
Globus Medical Inc. (NYSE: GMED) Average Daily Trading Volume
36,391 shares crossed the trading desk yesterday, lower than the average, out of a total float 62,055,000. Look for trading volume to pick up in the coming days as momentum traders often use upticks in trading volume to pinpoint large volume growth or circulation by institutional investors.
As with all potential breakouts, investors watch for volume to be at least 40%-50% higher than normal on the breakout to indicate that fund managers and other professional investors are jumping in.
Institutional sponsorship simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these retain teams of analysts that research thousands of stocks. Thus, watching their interests is a good way to ensure you are buying the right stocks.
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 spotting trends, moving averages allow traders to make those trends work in their favor and increase the number of successful trades.
With that in mind, Globus Medical Inc. (NYSE: GMED) now has a 50-day MA of $22.34 and 200-day MA of $23.36. It has traded in a 52-week range between $19.25 – 28.60 and today’s last price is 26.50%% lower than the 52 week high of $28.60.
Earnings growth is an important factor to consider when investing in stocks and investors look for companies that have raised their earnings by at least 25% for a 3 year period.
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.