Modine Manufacturing Co. (NYSE: MOD) shares rose in value Tuesday Dec 6 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, 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 Zacks Investment Research upgraded shares of Modine Manufacturing Co. (NYSE: MOD) from Strong Sell to Hold today. With a rating of Hold on the stock, the company has a 52-week high of $15.05. The one-year price target of $15.50 is above the opening price of $14.65, resulting a fair amount of other analysts to comment on the stock recently. Share prices often trend to the upside on recommendations and new price targets of professional brokerage firms.
Shares of Modine Manufacturing Co. (NYSE: MOD) opened at $14.65 on Tuesday and has traded in a range between, $14.50 and $15.05, and last traded at $14.80, a spike of $0.40 or 2.78% over the previous closing price.
Modine Manufacturing Co. (NYSE: MOD) currently has a market cap of 707.11M.
Modine Manufacturing Co. (NYSE: MOD) Average Daily Trading Volume
The stock’s average daily volume is 148,134 shares out of a total float 46,422,000 and some 102,105 shares traded hands yesterday, lower than the average. Trading volume is likely to increase in the next few days as momentum traders often use increases in trading volume to determine substantial volume aggregation or distribution by institutional investors.
As with all potential breakouts, investors look for volume to be at least 40%-50% above normal on the breakout to indicate that fund managers and other professional investors are jumping in.
Institutional sponsorship is defined by 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 investigate thousands of stocks, so it is good validation to see them buying a stock you’re considering.
Modine Manufacturing Co. (NYSE: MOD) 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, Modine Manufacturing Co. (NYSE: MOD) now has a 50-day MA of $11.39 and 200-day MA of $10.65. It has traded in a 52-week range between $5.39 – 15.05 and today’s last price is 1.66%% lower than the 52 week high of $15.05.
Earnings growth is a crucial factor to look at when investing in stocks and investors identify companies that have been successful at growing their earnings at least 25% or more over a 3 year period.
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