Sandstorm Gold Ltd (NASDAQ: SAND) shares rose in value Wednesday Dec 14 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. equities traded mostly lower on Wednesday as investors awaited the Federal Reserve’s latest decision regarding monetary policy.
The Dow Jones industrial average traded 35 points lower, with Goldman Sachs contributing the most losses. The S&P 500 traded 0.1 percent lower, with financials leading decliners. The Nasdaq composite, meanwhile, held flat.
Analysts at Zacks Investment Research upgraded shares of Sandstorm Gold Ltd (NASDAQ: SAND) from Hold to Buy today. The company currently has a rating of Buy on the shares. The one-year price target of $5.64 is higher than the opening price of $3.87, that has caused a number of other analysts to comment on the stock in recent days. Looking back over the last 52 weeks, Sandstorm Gold Ltd stock has a high of $6.75. Stock prices often move to the upside on recommendations and new price targets of professional brokerage firms.
Shares of Sandstorm Gold Ltd (NASDAQ: SAND) opened at $3.87 on Tuesday trading between $3.80 and $3.87, and last traded at $3.84, an increase of $0.08 or 2.13% compared to the previous closing price.
Sandstorm Gold Ltd (NASDAQ: SAND) currently has a market cap of 584.61M.
Sandstorm Gold Ltd (NASDAQ: SAND) Average Daily Trading Volume
The stock’s average daily volume is 2,146,570 shares out of a total float 150,083,000 and some 222,416 shares crossed the trading desk yesterday, lower than the average. Trading volume is likely to increase in the next few days as momentum traders often use upticks in trading volume to pinpoint heavy volume growth or distribution by institutional investors.
However, just a day of heavy buy side trading is not enough to determine a trend. As such, market traders will continue to look for institutional sponsorship as a signal that financial institutions are moving forward.
Institutional sponsorship commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors retain substantial teams of analysts researching thousands of stocks, so it is good validation to see them taking a postion in a stock you are researching.
Sandstorm Gold Ltd (NASDAQ: SAND) 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 the moving averages they affect— traders are able to make make the best trades.
Trades for Sandstorm Gold Ltd (NASDAQ: SAND) have ranged from $1.94 – 6.75, and the stock now has a 50-day MA of $4.17 and 200-day MA of $4.91. Today’s last price is 43.11%% under the 52 week high of $6.75.
Earnings growth is a crucial factor to look at when investing in stocks and investors look for companies that have increased their earnings at least 25% or more for a 3 year period.
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