KLA-Tencor Corp. (NASDAQ: KLAC) shares rose in value Tuesday Dec 13 with lighter trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile, the Dow DJIA, +0.47% climbed 106 points, or 0.6%, to 19,905. If the Dow finishes higher, it will notch its seventh straight gain.
The S&P 500 index SPX, +0.56% gained 10.45 points, or 0.5%, to 2,267 and the tech-heavy Nasdaq Composite Index COMP, +1.02% added 48 points, or 0.9%, to 5,461.
Both the S&P 500 index SPX, +0.56% and Nasdaq Composite COMP, +1.02% ended lower on Monday, with investors appearing reluctant to push shares higher ahead of the Fed meeting
Analysts at Zacks Investment Research upgraded shares of KLA-Tencor Corp. (NASDAQ: KLAC) from Hold to Buy today. The company currently has a rating of Buy on the shares. A number of other analysts have commented on the stock in recent days, and the company has earned a consensus one-year price target of $78.32, above the opening price of $77.58, a difference of 10.01 percent. KLA-Tencor Corp. stock has a 52-week high of $83.23. Usually, after analysts assign an upgrade report on a stock, they will later issue other revisions, usually followed by a price target change.
KLA-Tencor Corp. (NASDAQ: KLAC) shares last traded at $78.28, a spike of $0.96 or 1.24% compared to the previous closing price. Opening at $77.58, they varied from $77.58 and $78.51 throughout the day.
KLA-Tencor Corp. (NASDAQ: KLAC) currently has a market cap of 12.24B.
KLA-Tencor Corp. (NASDAQ: KLAC) Average Daily Trading Volume
The stock’s average daily volume is 2,269,970 shares out of a total float 155,826,000 and some 83,530 shares traded hands yesterday, lower than normal. Swing traders often use swings in trading volume to pinpoint substantial volume accumulation or dissemination by institutional investors, so trading volume is likely to increase in the next few days.
However, one day of high volume buy side trading is not enough to assert a trend. As such, market traders will continue to watch for institutional sponsorship as an indicator 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.
These instituitional investors retain teams of analysts researching thousands of stocks, so it is good validation to see them buying a stock you’re researching.
KLA-Tencor Corp. (NASDAQ: KLAC) 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.
Traders are able to make make well planned trades when they follow the trading habits of professional investors.
Trades for KLA-Tencor Corp. (NASDAQ: KLAC) have ranged from $62.33 – 83.230, and the stock now has a 50-day MA of $77.31 and 200-day MA of $73.51. Today’s last price is 5.95%% lower than the 52 week high of $83.23.
Earnings growth is a crucial factor to look at when investing in stocks and investors watch for companies that have grown their earnings by at least 25% for 3 consecutive years.
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