South Jersey Industries Inc. (NYSE: SJI) shares slid back in value Tuesday Nov 29 with lighter trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
U.S. stocks on Tuesday morning traded near break-even levels, with the main benchmarks switching in and out of negative territory
The Dow Jones Industrial Average DJIA, -0.09% was flat at 19,102. Meanwhile, the Nasdaq Composite COMP, +0.00% traded 18 points, or 0.1%, at 5,362.
The S&P 500 index SPX, -0.04% was off by 0.1%, or 2 points, at 2,199, with five of the 11 main sectors trading lower.
Analysts at Zacks Investment Research upgraded shares of South Jersey Industries Inc. (NYSE: SJI) from Hold to Buy today. With a rating of Buy on the shares, the company has a 52-week high of $33.75. The one-year price target of $34.17 is above the opening price of $33.61, causing a number of other analysts to comment on the company recently. Share prices often move to the upside on recommendations and new price targets of professional brokerage firms.
South Jersey Industries Inc. (NYSE: SJI) shares last traded at $33.59, which represents a decrease of $0.02 per share or -0.06% compared to the previous closing price. Opening at $33.61, they varied from $33.37 and $33.75 throughout the day.
South Jersey Industries Inc. (NYSE: SJI) currently has a market cap of 2.66B.
South Jersey Industries Inc. (NYSE: SJI) Average Daily Trading Volume
The stock’s average daily volume is 347,492 shares out of a total float 78,698,000 and some 19,265 shares traded hands yesterday, lower than the average. Momentum traders often use upticks in trading volume to identify substantial volume growth or distribution by institutional investors, so look for trading volume to pick up in the coming days.
However, one day of significant 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 is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors retain teams of analysts researching thousands of stocks, so it is good corroboration to see them buying a stock you are considering.
South Jersey Industries Inc. (NYSE: SJI) 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.
Traders are able to make make educated trades when they track the trading habits of professional investors.
Trades for South Jersey Industries Inc. (NYSE: SJI) have ranged from $21.24 – 33.75, and the stock now has a 50-day MA of $29.87 and 200-day MA of $30.07. Today’s last price is 0.47%% below the 52 week high of $33.75.
Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors identify companies that have been successful at growing their earnings at least 25% or more for the past 3 years.
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