Nova Measuring Instruments Ltd. (NASDAQ: NVMI) shares rose on Wednesday Nov 30 with heavier trade volume than normal after more analysts initiated coverage on the stock.
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 Benchmark Co. initiated coverage on Nova Measuring Instruments Ltd. (NASDAQ: NVMI) stock, rating the company at Buy. The company currently has a rating of Buy on the stock. The one-year price target of $16.00 is higher than the opening price of $12.70, that has caused a number of other analysts to issue statements on the stock recently. Looking back over the last year, Nova Measuring Instruments Ltd. stock has a high of $12.76. Analysts and brokerage firms will subsequently issue periodic updates after initiating coverage,. Price changes targets are not unheard of.
Nova Measuring Instruments Ltd. (NASDAQ: NVMI) shares last traded at $12.73, a spike of $0.05 or 0.37% from the previous closing price. Opening at $12.70, they varied from $12.69 and $12.76 throughout the day.
Nova Measuring Instruments Ltd. (NASDAQ: NVMI) currently has a market cap of 345.77M.
Nova Measuring Instruments Ltd. (NASDAQ: NVMI) Average Daily Trading Volume
85,785 shares crossed the trading desk yesterday, higher than normal, out of a total float 22,980,000. Large gains in trading volume and price inflation together could mean considerable volume aggregation by institutional investors.
As with all possible breakouts, investors watch for volume to be at least 40%-50% above normal on the breakout to demonstrate that fund managers and other professional investors are jumping in.
Institutional sponsorship simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors 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.
Nova Measuring Instruments Ltd. (NASDAQ: NVMI) 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 successful trades.
With that in mind, Nova Measuring Instruments Ltd. (NASDAQ: NVMI) now has a 50-day MA of $12.25 and 200-day MA of $11.73. It has traded in a 52-week range between $8.57 – 12.7600 and today’s last price is 0.26%% lower than the 52 week high of $12.76.
Earnings growth is a crucial factor to consider when buying stocks and investors look for companies that have been successful at growing their earnings at least 25% or more over a 3 year period.
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