Nuance Communications Inc. (NASDAQ: NUAN) shares slid back in value Thursday Dec 1 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 with slight gains on Thursday.
The Dow Jones Industrial Average DJIA, +0.31% rose 38.22 points, or 0.2%, to 19,174, while the S&P 500 SPX, +0.01% added 2.1 points to 2,202, a rise of 0.1%.
The Nasdaq Composite Index COMP, -0.32% rose less than 1 point to 5,323, essentially unchanged on the day.
Analysts at Zacks Investment Research upgraded shares of Nuance Communications Inc. (NASDAQ: NUAN) from Hold to Buy today. The company currently has a rating of Buy on the shares. As a means of comparison, a number of other analysts have commented on the company in recent days, and Nuance Communications Inc. has secured a consensus one-year price target of $20.33, above the opening price of $16.15, a difference of 12.56 percent. Nuance Communications Inc. stock has a 52-week high of $21.83. Stock prices sometimes get a jump to the upside when analysts upgrade a stock.
Nuance Communications Inc. (NASDAQ: NUAN) shares last traded at $16.19, which is a decrease of $0.02 per share or -0.12% compared to the previous closing price. Opening at $16.15, they ranged from $16.08 and $16.26 throughout the day.
Nuance Communications Inc. (NASDAQ: NUAN) currently has a market cap of 4.66B.
Nuance Communications Inc. (NASDAQ: NUAN) Average Daily Trading Volume
The stock’s average daily volume is 2,351,360 shares out of a total float 264,944,000 and some 185,576 shares traded hands yesterday, lower than the average. Investors often use upticks in trading volume to identify substantial volume aggregation or distribution by institutional investors, so trading volume is likely to increase in the next few days.
However, a single day of heavy buy side trading is not enough to assert a trend. As such, market traders will continue to look for institutional sponsorship as a signal that financial institutions are moving forward.
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 substantial 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.
Nuance Communications Inc. (NASDAQ: NUAN) 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.
Traders are able to make make more useful choices on trades when they track the trading habits of professional investors.
Trades for Nuance Communications Inc. (NASDAQ: NUAN) have ranged from $13.44 – 21.83, and the stock now has a 50-day MA of $14.57 and 200-day MA of $15.28. Today’s last price is 25.82%% below the 52 week high of $21.83.
Earnings growth is a critical factor to consider when buying stocks and investors identify companies that have been successful at growing their earnings at least 25% or more for 3 consecutive years.
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