Layne Christensen Co. (NASDAQ: LAYN) shares rose in value Thursday Dec 15 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Analysts at Zacks Investment Research upgraded shares of Layne Christensen Co. (NASDAQ: LAYN) from Hold to Buy today. Zacks Investment Research currently has a rating of Buy on the shares. The one-year price target of $10.50 is $10.50, that has caused a fair amount of other analysts to report on the company in recent days. Looking back over the last 52 weeks, Layne Christensen Co. stock has a high of $10.90. Share prices often shift to the upside on recommendations and new price targets of professional analysts.
Layne Christensen Co. (NASDAQ: LAYN) shares last traded at $10.66, a jump of $0.18 or 1.72% from the previous closing price. Opening at $10.50, they ranged from $10.35 and $10.71 throughout the day.
Layne Christensen Co. (NASDAQ: LAYN) currently has a market cap of 211.12M.
Layne Christensen Co. (NASDAQ: LAYN) Average Daily Trading Volume
The stock’s average daily volume is 99,694 shares out of a total float 17,777,000 and some 8,675 shares crossed the trading desk yesterday, below normal. Investors often use increases in trading volume to identify substantial volume accumulation or distribution by institutional investors, so look for trading volume to pick up in the coming days.
While an increase in trading for one day will not mean much, however, a trend of heavy trading volume on the buy side over a period of days or weeks delivers a positive cue to market traders that institutions may be moving in, so institutional sponsorship is very important.
Institutional sponsorship simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Professional investors such as these retain teams of analysts researching thousands of stocks. Thus, watching their interests is a good way to make sure you are buying the right stocks.
Layne Christensen Co. (NASDAQ: LAYN) 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 identifying trends, moving averages allow investors to make those trends work in their favor and increase the number of winning trades.
With that in mind, Layne Christensen Co. (NASDAQ: LAYN) now has a 50-day MA of $9.88 and 200-day MA of $8.75. It has traded in a 52-week range between $3.75 – 10.90 and today’s last price is 2.25%% lower than the 52 week high of $10.90.
Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors seek companies that have raised their earnings by at least 25% over 3 consecutive years.
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