Plantronics, Inc. (NYSE: PLT) shares rose on Tuesday February 7 on lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a downgraded rating.
U.S. stocks were up in early trade on Tuesday which could put the equity market on track to set new records.
Investors were focusing on earnings, with GM and Michael Kors making moves after reporting early.
S&P 500 futures ESH7, +0.31% rose 7 points, or 0.3%, to 2,293.50, while Dow Jones Industrial Average futures YMH7, +0.46% tacked on 70 points, or 0.4%, to 20,042. Nasdaq-100 futures NQH7, +0.48% added 14 points, or 0.3%, to 5,171.75.
Analysts at Zacks Investment Research downgraded shares of Plantronics, Inc. (NYSE: PLT) from Hold to Sell in a research note to investors today. With a rating of Sell on the shares, the company has a 52-week high of $57.79. The one-year price target of $58.00 is above the opening price of $53.50, causing a number of other analysts to issue statements on the company recently. Important and integral changes in the company’s procedures, future outlook or industry can cause downgrades as the analysts feel that the future prospects for the security have diminished from the original recommendation.
Yesterday Plantronics, Inc. (NYSE: PLT) shares last traded at $53.85, which is a spike of $0.35 over the previous closing price. Opening at $53.50, they fluctuated from $53.50 and $53.93 throughout the day.
Plantronics, Inc. (NYSE: PLT) currently has a market cap of 1.74B.
Plantronics, Inc. (NYSE: PLT) Average Daily Trading Volume
6,035 shares crossed the trading desk yesterday, 8 percent lower than the average, out of a total float 31,821,000. lower than normal. Look for trading volume to pick up in the coming days as momentum traders often use swings in trading volume to identify heavy volume accumulation or distribution by institutional investors.
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 just refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors have substantial teams of analysts that research thousands of stocks, so it is good validation to see them taking a postion in a stock you are researching.
Plantronics, Inc. (NYSE: PLT) 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 traders to make those trends work in their favor and increase the number of winning trades.
With that in mind, Plantronics, Inc. (NYSE: PLT) now has a 50-day MA of $55.25 and 200-day MA of $52.08. It has traded in a 52-week range between $33.82 – 57.790 and today’s last price is 6.83%% lower than the 52 week high of $57.79.
Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors seek companies that have grown their earnings by at least 25% for a 3 year period.
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