Magnetek Inc (NYSE: MAG) shares rose in value Thursday Dec 22 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, U.S. stocks opened mostly flat on Thursday. The Dow Jones Industrial Average DJIA, -0.15% fell 15 points to 19,928, a drop of less than 0.1%. The S&P 500 SPX, -0.22% fell 1 point, or 0.05%, to 2,264. The Nasdaq Composite Index COMP, -0.23% fell 1 point to 5,470.21, essentially unchanged on the day.
Analysts at Citigroup Inc. upgraded shares of Magnetek Inc (NYSE: MAG) from Outperform to Strong-Buy today. With a rating of Strong-Buy on the stock, the company has a 52-week high of $18.12. The one-year price target of $17.10 is higher than the opening price of $9.82, resulting a fair amount of other analysts to issue statements on the company recently. Share prices sometimes get a bounce to the upside when analysts upgrade a stock.
Shares of Magnetek Inc (NYSE: MAG) opened at $9.82 on Tuesday and has traded in a range between, $9.71 and $9.91, and last traded at $9.83, which represents an increase of $0.25 or 2.61% from the previous closing price.
Magnetek Inc (NYSE: MAG) currently has a market cap of 792.97M.
Magnetek Inc (NYSE: MAG) Average Daily Trading Volume
41,805 shares traded hands yesterday, lower than the average, out of a total float 69,948,000. Look for trading volume to pick up in the coming days as swing traders often use increases in trading volume to pinpoint large volume aggregation or distribution by institutional investors.
While an increase in trading for short periods will not mean much, conversely, a trend of heavy trading volume on the buy side over a period of days or weeks delivers a positive indicator to market traders that institutions may be moving in, so institutional sponsorship is crucial.
Institutional sponsorship just refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors retain teams of analysts that investigate thousands of stocks. Thus, watching their interests is a good way to make sure you are buying the right stocks.
Magnetek Inc (NYSE: MAG) 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 the moving averages they influence— traders can make smarter trades.
Trades for Magnetek Inc (NYSE: MAG) have ranged from $6.12 – 18.12, and the stock now has a 50-day MA of $12.43 and 200-day MA of $14.30. Today’s last price is 45.75%% below the 52 week high of $18.12.
Earnings growth is a crucial factor to research when buying stocks and investors identify companies that have been successful at growing their earnings by at least 25% for the past 3 years.
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