Quantenna Communications Inc (QTNA) Shares Active after Upgrade at Needham & Company LLC

Quantenna Communications Inc (NASDAQ: QTNA) shares rose in value Monday Dec 5 with lower 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 Needham & Company LLC upgraded shares of Quantenna Communications Inc (NASDAQ: QTNA) from Buy to Strong-Buy today. With a rating of Strong-Buy on the stock, Quantenna Communications Inc has a 52-week high of $20.63. A number of other analysts have issued reports on the company recently, and Quantenna Communications Inc has secured a consensus one-year price target of $24.40, above the opening price of $18.20. Typically, after analysts publish an upgrade report on a stock, they will later issue other updates, often followed by a price target change.

Quantenna Communications Inc (NASDAQ: QTNA) shares last traded at $18.08, which represents a jump of $1.25 or 7.43% from the previous closing price. Opening at $18.20, they ranged from $17.55 and $18.37 throughout the day.

Quantenna Communications Inc (NASDAQ: QTNA) now has a market cap of 23.32M.

Quantenna Communications Inc (NASDAQ: QTNA) Average Daily Trading Volume

The stock’s average daily volume is 214,459 shares out of a total float 548,000 and some 41,980 shares crossed the trading desk yesterday, lower than normal. Investors often use increases in trading volume to identify heavy volume aggregation or dissemination by institutional investors, so look for trading volume to pick up in the coming days.

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

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

Institutional investors such as these retain substantial teams of analysts that research thousands of stocks. Thus, watching their interests is a good way to make sure you are buying the right stocks.

Quantenna Communications Inc (NASDAQ: QTNA) 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 the moving averages they influence—it allows for traders to make more effective choices on trades.

With that in mind, Quantenna Communications Inc (NASDAQ: QTNA) now has a 50-day MA of $17.39 and 200-day MA of $17.39. It has traded in a 52-week range between $13.75 – 20.6300 and today’s last price is 12.36%% lower than the 52 week high of $20.63.

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

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