Semtech Corp. (NASDAQ: SMTC) shares rose in value Thursday Dec 1 with heavier 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 Oppenheimer Holdings Inc. upgraded shares of Semtech Corp. (NASDAQ: SMTC) from Market Perform to Outperform today. Oppenheimer Holdings Inc. currently has a rating of Outperform on the stock. As a means of comparison, a number of other analysts have spoken on the company in recent days, and Semtech Corp. has earned a consensus one-year price target of $30.75, above the opening price of $30.05. Semtech Corp. stock has a 52-week high of $31.45. Share prices sometimes get a boost to the upside when analysts upgrade a stock.
Semtech Corp. (NASDAQ: SMTC) shares last traded at $31.40, a spike of $3.30 or 11.74% compared to the previous closing price. Opening at $30.05, they fluctuated from $30.05 and $31.45 throughout the day.
Semtech Corp. (NASDAQ: SMTC) currently has a market cap of 2.06B.
Semtech Corp. (NASDAQ: SMTC) Average Daily Trading Volume
429,154 shares crossed the trading desk yesterday, above the average, out of a total float 64,745,000. Considerable volume aggregation by institutional investors may be on the horizon as the combination of substantial expansions in trading volume and price growth can be deciding factors.
While an increase in 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 delivers a positive indicator to market traders that institutions may be moving in, so institutional sponsorship is crucial.
Institutional sponsorship simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors have substantial teams of analysts researching thousands of stocks, so it is good validation to see them taking a postion in a stock you are considering.
Semtech Corp. (NASDAQ: SMTC) 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 spotting trends, moving averages allow traders to make those trends work in their favor and increase the number of successful trades.
Trades for Semtech Corp. (NASDAQ: SMTC) have ranged from $15.70 – 31.45, and the stock now has a 50-day MA of $25.74 and 200-day MA of $25.17. Today’s last price is 0.16%% lower than the 52 week high of $31.45.
Earnings growth is an important factor to research when investing in stocks and investors seek companies that have been successful at growing their earnings at least 25% or more for a 3 year period.
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