United States Cellular Corp. (NYSE: USM) shares rose in value Wednesday Dec 14 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. equities traded mostly lower on Wednesday as investors awaited the Federal Reserve’s latest decision regarding monetary policy.
The Dow Jones industrial average traded 35 points lower, with Goldman Sachs contributing the most losses. The S&P 500 traded 0.1 percent lower, with financials leading decliners. The Nasdaq composite, meanwhile, held flat.
Analysts at Morgan Stanley upgraded shares of United States Cellular Corp. (NYSE: USM) from Underweight to Equal Weight today. With a rating of Equal Weight on the shares, the company has a 52-week high of $45.87. As a means of comparison, a number of other analysts have spoken on the company recently, and the company has earned a consensus one-year price target of $40.83, lower than the opening price of $42.00. Typically, after analysts assign an upgrade report on a stock, they will later issue other revisions, such as a price target change.
Shares of United States Cellular Corp. (NYSE: USM) opened at $42.00 on Tuesday and has traded in a range between, $41.57 and $43.00, and last traded at $42.68, which represents an increase of $1.20 or 2.89% over the previous closing price.
United States Cellular Corp. (NYSE: USM) currently has a market cap of 3.62B.
United States Cellular Corp. (NYSE: USM) Average Daily Trading Volume
The stock’s average daily volume is 94,522 shares out of a total float 13,849,000 and some 116,340 shares traded hands yesterday, above normal. Substantial expansions in trading volume and price growth together could mean excessive volume aggregation by institutional investors.
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 very important.
Institutional sponsorship just refers to 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. Thus, watching their interests is a good way to ensure you are buying the right stocks.
United States Cellular Corp. (NYSE: USM) 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 traders to make those trends work in their favor and increase the number of winning trades.
Trades for United States Cellular Corp. (NYSE: USM) have ranged from $32.72 – 45.87, and the stock now has a 50-day MA of $36.73 and 200-day MA of $37.67. Today’s last price is 6.95%% below the 52 week high of $45.87.
Earnings growth is a critical factor to research when investing in stocks and investors identify companies that have grown their earnings by at least 25% for the past 3 years.
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