Moelis & Co. (MC) Shares Tick Up after Upgrade at Zacks Investment Research

Moelis & Co. (NYSE: MC) shares rose in value Wednesday Nov 30 with slower 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 Jones Industrial Average hit an intraday record after opening higher Wednesday, led by the energy sector as hopes rose that the world’s major oil producers are near a deal on limiting output.

The benchmark S&P 500 and Dow were on track to post their largest monthly gains since March.

The S&P 500 SPX, +0.22% gained 5 points, or 0.2%, to 2,209. The Dow Jones Industrial Average DJIA, +0.41% added 62 points, or 0.3%, to 19,184, trading in record territory. The Nasdaq Composite COMP, -0.08% was 7 points, or 0.1%, higher at 5,386.

Analysts at Zacks Investment Research upgraded shares of Moelis & Co. (NYSE: MC) from Strong Sell to Hold today. With a rating of Hold on the shares, the company has a 52-week high of $30.16. The one-year price target of $29.88 is higher than the opening price of $28.75, that has caused a number of other analysts to comment on the company in recent days. Stock prices sometimes get a jump to the upside when analysts upgrade a stock.

Moelis & Co. (NYSE: MC) shares last traded at $29.00, which is a jump of $0.45 or 1.58% from the previous closing price. Opening at $28.75, they fluctuated from $28.38 and $29.00 throughout the day.

Moelis & Co. (NYSE: MC) now has a market cap of 597.55M.

Moelis & Co. (NYSE: MC) Average Daily Trading Volume

3,835 shares traded hands yesterday, lower than normal, out of a total float 18,487,000. Momentum traders often use increases in trading volume to determine substantial volume accumulation or distribution by institutional investors, so trading volume is likely to increase in the next few days.

As with all potential breakouts, investors look for volume to be at least 40%-50% higher than normal on the breakout to show 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.

Institutional investors such as these have teams of analysts that research thousands of stocks. So watching their interests is a good way to make sure you are buying the right stocks.

Moelis & Co. (NYSE: MC) 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 marking the activity of these professional investors and how they affect moving averages, traders are able to make make smarter trades.

With that in mind, Moelis & Co. (NYSE: MC) now has a 50-day MA of $26.32 and 200-day MA of $25.90. It has traded in a 52-week range between $21.91 – 30.16 and today’s last price is 3.85%% lower than the 52 week high of $30.16.

Earnings growth is a crucial factor to research 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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