Radian Group Inc. (NYSE: RDN) shares rose in value Thursday Dec 1 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, 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 Radian Group Inc. (NYSE: RDN) from Hold to Buy today. With a rating of Buy on the shares, Radian Group Inc. has a 52-week high of $14.90. As a means of comparison, a number of other analysts have issued reports on the stock recently, and the company has earned a consensus one-year price target of $17.55, above the opening price of $14.70, a difference of 11.83 percent. Usually, after analysts publish an upgrade report on a stock, they will subsequently issue periodic revisions, usually followed by a price target change.
Radian Group Inc. (NYSE: RDN) shares last traded at $14.83, which represents an increase of $0.27 or 1.87% compared to the previous closing price. Opening at $14.70, they varied from $14.66 and $14.90 throughout the day.
Radian Group Inc. (NYSE: RDN) now has a market cap of 3.18B.
Radian Group Inc. (NYSE: RDN) Average Daily Trading Volume
235,763 shares crossed the trading desk yesterday, lower than the average, out of a total float 213,155,000. Swing traders often use upticks in trading volume to pinpoint substantial volume aggregation or dissemination by institutional investors, so look for trading volume to pick up in the coming days.
As with all potential breakouts, investors watch for volume to be at least 40%-50% above normal on the breakout to indicate that fund managers and other professional investors are jumping in.
Institutional sponsorship simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Professional investors such as these retain teams of analysts researching thousands of stocks, so it is good validation to see them taking a postion in a stock you are considering.
Radian Group Inc. (NYSE: RDN) 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 marking the activity of these professional investors and how they influence moving averages,it allows for traders to make more effective judgments on trades.
Trades for Radian Group Inc. (NYSE: RDN) have ranged from $9.29 – 14.900, and the stock now has a 50-day MA of $14.06 and 200-day MA of $12.82. Today’s last price is 0.46%% below the 52 week high of $14.90.
Earnings growth is an important factor to look at when buying stocks and investors seek companies that have grown their earnings at least 25% or more for a 3 year period.
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