Harmonic Inc. (NASDAQ: HLIT) shares rose on Tuesday Dec 6 with lower trade volume than normal after more analysts initiated coverage on the stock.
Meanwhile, U.S. stocks looked for direction on Tuesday with the Dow industrials trying for a fresh record a day after closing at an all-time high in the previous session.
The Dow Jones Industrial Average DJIA, -0.08% opened little-changed at 19,221, the S&P 500 index SPX, -0.01% climbed 2 points, or 0.1%, at 2,206, while the Nasdaq Composite Index COMP, +0.20%
Analysts at Dougherty & Co initiated coverage on Harmonic Inc. (NASDAQ: HLIT) stock, starting the company at Buy. With a rating of Buy on the shares, the company has a 52-week high of $6.13. The one-year price target of $6.00 is higher than the opening price of $4.95, that has caused a number of other analysts to issue statements on the stock in recent days. Changes in price targets are not uncommon as analysts and brokerage firms will issue periodic updates after beginning or initiating coverage.
Shares of Harmonic Inc. (NASDAQ: HLIT) opened at $4.95 on Tuesday trading between $4.95 and $5.25, and last traded at $5.25, an increase of $0.50 or 10.53% over the previous closing price.
Harmonic Inc. (NASDAQ: HLIT) now has a market cap of 411.32M.
Harmonic Inc. (NASDAQ: HLIT) Average Daily Trading Volume
201,144 shares crossed the trading desk yesterday, below the average, out of a total float 69,281,000. Look for trading volume to pick up in the coming days as momentum traders often use upticks in trading volume to pinpoint substantial volume growth or circulation by institutional investors.
As with all potential breakouts, investors look for volume to be at least 40%-50% greater than normal on the breakout to show that fund managers and other professional investors are jumping in.
Institutional sponsorship just refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Professional investors such as these retain substantial teams of analysts that research thousands of stocks, so it is good validation to see them buying a stock you’re considering.
Harmonic Inc. (NASDAQ: HLIT) 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 winning trades.
With that in mind, Harmonic Inc. (NASDAQ: HLIT) now has a 50-day MA of $4.95 and 200-day MA of $4.12. It has traded in a 52-week range between $2.51 – 6.13 and today’s last price is 14.36%% lower than the 52 week high of $6.13.
Earnings growth is a critical factor to look at when investing in stocks and investors watch for companies that have been successful at growing their earnings by at least 25% over the past 3 years.
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