Square Inc. (NYSE: SQ) shares rose in value Friday Dec 2 with lighter 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 edged lower on Friday, with major indexes on track for a weekly decline.
The Dow Jones Industrial Average DJIA, -0.14% fell 23 points, or 0.1%, to 19,169, while the S&P 500 SPX, +0.09% lost 1.2 point to 2,190, a move of less than 0.1%. The Nasdaq Composite COMP, -0.15% fell 5.3 points, or 0.1%, to 5,247.
Analysts at Deutsche Bank AG upgraded shares of Square Inc. (NYSE: SQ) from Hold to Buy today. The company currently has a rating of Buy on the shares. The one-year price target of $13.38 is above the opening price of $12.93, causing a number of other analysts to issue statements on the stock in recent days. Looking back over the last 52 weeks, Square Inc. stock has a high of $15.91. Stock prices sometimes get a jump to the upside when analysts upgrade a stock.
Square Inc. (NYSE: SQ) shares last traded at $13.18, which represents an increase of $0.47 or 3.66% from the previous closing price. Opening at $12.93, they varied from $12.93 and $13.24 throughout the day.
Square Inc. (NYSE: SQ) now has a market cap of 4.64B.
Square Inc. (NYSE: SQ) Average Daily Trading Volume
The stock’s average daily volume is 4,301,630 shares out of a total float 186,358,000 and some 1,774,018 shares traded hands yesterday, below normal. Swing traders often use upticks in trading volume to identify large volume growth 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 show that fund managers and other professional investors are jumping in.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors retain teams of analysts that investigate thousands of stocks, so it is good corroboration to see them buying a stock you are researching.
Square Inc. (NYSE: SQ) 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, traders are able to make make educated trades.
Trades for Square Inc. (NYSE: SQ) have ranged from $8.06 – 15.9100, and the stock now has a 50-day MA of $11.83 and 200-day MA of $10.80. Today’s last price is 17.19%% under the 52 week high of $15.91.
Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors seek companies that have grown their earnings by at least 25% over the past 3 years.
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