Telecom Italia SpA (NYSE: TI) shares slid back in value Thursday Dec 1 with lower 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 Citigroup Inc. upgraded shares of Telecom Italia SpA (NYSE: TI) from Sell to Neutral today. With a rating of Neutral on the shares, the company has a 52-week high of $13.27. A number of other analysts have spoken on the stock recently, and Telecom Italia SpA has secured a consensus one-year price target of $17.80, above the opening price of $7.48, a difference of 23.89 percent. Stock prices often move to the upside on recommendations and new price targets of professional brokerage firms.
Telecom Italia SpA (NYSE: TI) shares last traded at $7.45, which represents a drop of $0.03 per share or -0.40% compared to the previous closing price. Opening at $7.48, they varied from $7.43 and $7.48 throughout the day.
Telecom Italia SpA (NYSE: TI) now has a market cap of 14.43B.
Telecom Italia SpA (NYSE: TI) Average Daily Trading Volume
13,356 shares traded hands yesterday, below the average, out of a total float 1,573,727,000. Swing traders often use swings in trading volume to determine large volume aggregation or distribution by institutional investors, so look for trading volume to pick up in the coming days.
While an increase in trading for short periods will not mean much, however, a trend of heavy trading volume on the buy side over a period of days or weeks sends a positive cue to market traders that institutions may be moving in, so institutional sponsorship is very important.
Institutional sponsorship just refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Professional investors such as these retain substantial teams of analysts that research thousands of stocks. Thus, watching their interests is a good way to make sure you are buying the right stocks.
Telecom Italia SpA (NYSE: TI) 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 investors to make those trends work in their favor and increase the number of winning trades.
With that in mind, Telecom Italia SpA (NYSE: TI) now has a 50-day MA of $8.02 and 200-day MA of $8.43. It has traded in a 52-week range between $6.95 – 13.27 and today’s last price is 43.86%% lower than the 52 week high of $13.27.
Earnings growth is a critical factor to consider when investing in stocks and investors look for companies that have been successful at growing their earnings at least 25% or more over a 3 year period.
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