Ormat Technologies Inc. (ORA) Shares Tick Up after Upgrade at Avondale Partners

Ormat Technologies Inc. (NYSE: ORA) shares rose in value Monday Dec 19 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 DJIA, +0.22% was trading up 37 points, or 0.2%, at 19,879, inching up to break the psychologically important 20,000 level.

The S&P 500 index SPX, +0.20% was up 6 points, or 0.3% at 2,264, with nine of the 11 main sectors trading higher.

The Nasdaq Composite Index COMP, +0.32% added 18 points, or 0.3% to 5,455.

Analysts at Avondale Partners upgraded shares of Ormat Technologies Inc. (NYSE: ORA) from Market Perform to Outperform today. Avondale Partners currently has a rating of Outperform on the stock. As a means of comparison, a number of other analysts have issued reports on the company in recent days, and Ormat Technologies Inc. has secured a consensus one-year price target of $49.33, lower than the opening price of $51.63. Ormat Technologies Inc. stock has a 52-week high of $51.99. Share prices often trend to the upside on recommendations and new price targets of professional analysts.

Ormat Technologies Inc. (NYSE: ORA) shares last traded at $51.70, a jump of $0.64 or 1.25% from the previous closing price. Opening at $51.63, they ranged from $51.46 and $51.99 throughout the day.

Ormat Technologies Inc. (NYSE: ORA) currently has a market cap of 2.57B.

Ormat Technologies Inc. (NYSE: ORA) Average Daily Trading Volume

67,866 shares traded hands yesterday, below normal, out of a total float 42,703,000. Look for trading volume to pick up in the coming days as swing traders often use increases in trading volume to identify large volume growth or circulation by institutional investors.

While increased trading for short periods will not mean much, conversely, a trend of heavy trading volume on the buy side over a period of days or weeks expresses a positive cue to market traders that institutions may be moving in, so institutional sponsorship is critical.

Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.

These instituitional investors have teams of analysts researching thousands of stocks, so it is good corroboration to see them buying a stock you’re researching.

Ormat Technologies Inc. (NYSE: ORA) 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, Ormat Technologies Inc. (NYSE: ORA) now has a 50-day MA of $48.13 and 200-day MA of $46.81. It has traded in a 52-week range between $32.25 – 51.99 and today’s last price is 0.56%% lower than the 52 week high of $51.99.

Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors seek companies that have been successful at growing their earnings by at least 25% over the past 3 years.

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