ON Semiconductor Corp. (NASDAQ: ON) shares rose in value Monday Dec 5 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 Industrials on Monday opened at an all-time high as investors dismissed concerns about the outcome of Italy’s referendum on Sunday.
The Dow Jones Industrial Average rose DJIA, +0.41% 85 points, or 0.5%, at 19,260, the S&P 500 index SPX, +0.42% began trade 9 points, or 0.4%, higher at 2,201, while the Nasdaq Composite Index COMP, +0.43% advanced 27 points, or 0.5%, at 5,282.
Analysts at Vetr Inc. upgraded shares of ON Semiconductor Corp. (NASDAQ: ON) from Buy to Strong-Buy today. The company currently has a rating of Strong-Buy on the stock. The one-year price target of $14.22 is higher than the opening price of $11.14, that has caused a fair amount of other analysts to report on the company recently. Looking back over the last year, ON Semiconductor Corp. stock has a high of $12.69. Share prices often shift to the upside on recommendations and new price targets of professional brokerage firms.
ON Semiconductor Corp. (NASDAQ: ON) shares last traded at $11.30, a jump of $0.18 or 1.57% compared to the previous closing price. Opening at $11.14, they ranged from $11.13 and $11.30 throughout the day.
ON Semiconductor Corp. (NASDAQ: ON) now has a market cap of 4.71B.
ON Semiconductor Corp. (NASDAQ: ON) Average Daily Trading Volume
336,725 shares traded hands yesterday, lower than the norm, out of a total float 410,245,000. Look for trading volume to pick up in the coming days as swing traders often use increases in trading volume to pinpoint substantial volume aggregation or distribution by institutional investors.
While an increase in trading for one day will not mean much, however, a trend of heavy trading volume on the buy side over a period of days or weeks sends a positive indicator to market traders that institutions may be moving in, so institutional sponsorship is crucial.
Institutional sponsorship simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors retain teams of analysts that research thousands of stocks, so it is good confirmation to see them taking a postion in a stock you are researching.
ON Semiconductor Corp. (NASDAQ: ON) 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 how they affect moving averages,it allows for traders to make more effective judgments on trades.
With that in mind, ON Semiconductor Corp. (NASDAQ: ON) now has a 50-day MA of $11.64 and 200-day MA of $10.53. It has traded in a 52-week range between $6.97 – 12.690 and today’s last price is 10.99%% lower than the 52 week high of $12.69.
Earnings growth is a crucial factor to look at when investing in stocks and investors seek companies that have been successful at growing their earnings by at least 25% for the past 3 years.
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