Teradyne Inc. (NYSE: TER) shares rose on Tuesday Dec 6 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock, raising the price target of stock.
Meanwhile, U.S. stocks looked for direction on Tuesday with the Dow industrials trying for a fresh record a day after closing at an all-time high in the previous session.
The Dow Jones Industrial Average DJIA, -0.08% opened little-changed at 19,221, the S&P 500 index SPX, -0.01% climbed 2 points, or 0.1%, at 2,206, while the Nasdaq Composite Index COMP, +0.20%
Teradyne Inc. (NYSE: TER) had its price target boosted by equities researchers at Cowen and Company from $25.00 to $27.00. With a rating of Outperform on the shares, Teradyne Inc. has a 52-week high of $25.18. The one-year price target of $24.25 is a decrease compared to the opening price of $24.67, causing a number of other analysts to comment on the company in recent days.
Teradyne Inc. (NYSE: TER) shares last traded at $24.85, which represents an increase of $0.58 or 2.37% over the previous closing price. Opening at $24.67, they ranged from $24.51 and $24.85 throughout the day.
Teradyne Inc. (NYSE: TER) currently has a market cap of 5.00B.
Teradyne Inc. (NYSE: TER) Average Daily Trading Volume
The stock’s average daily volume is 1,684,540 shares out of a total float 200,153,000 and some 428,162 shares crossed the trading desk yesterday, below the norm. Momentum traders often use increases in trading volume to determine substantial volume aggregation or circulation by institutional investors, so look for trading volume to pick up in the coming days.
While higher trading for short periods will not mean much, conversely, a trend of heavy trading volume on the buy side over a series of days or weeks sends a positive signal 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 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.
Teradyne Inc. (NYSE: TER) 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 identifying trends, moving averages allow investors to make those trends work in their favor and increase the number of successful trades.
With that in mind, Teradyne Inc. (NYSE: TER) now has a 50-day MA of $23.39 and 200-day MA of $21.16. It has traded in a 52-week range between $17.34 – 25.180 and today’s last price is 1.33%% lower than the 52 week high of $25.18.
Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors seek companies that have been successful at growing their earnings by at least 25% for 3 consecutive years.
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