Vectren Corp. (NYSE: VVC) shares rose in value Wednesday Dec 14 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. 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 Citigroup Inc. upgraded shares of Vectren Corp. (NYSE: VVC) from Neutral to Buy today. Citigroup Inc. currently has a rating of Buy on the stock. The one-year price target of $49.75 is less than the opening price of $52.62, resulting a fair amount of other analysts to report on the company in recent days. Looking back over the last 52 weeks, Vectren Corp. stock has a high of $53.33. Stock prices often move to the upside on recommendations and new price targets of professional analysts.
Vectren Corp. (NYSE: VVC) shares last traded at $52.35, which represents a jump of $0.40 or 0.77% over the previous closing price. Opening at $52.62, they varied from $52.28 and $52.90 throughout the day.
Vectren Corp. (NYSE: VVC) now has a market cap of 4.34B.
Vectren Corp. (NYSE: VVC) Average Daily Trading Volume
49,604 shares crossed the trading desk yesterday, below the norm, out of a total float 82,694,000. Momentum traders often use upticks in trading volume to identify large volume accumulation 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, conversely, a trend of heavy trading volume on the buy side over a period of days or weeks expresses a positive signal to market traders that institutions may be moving in, so institutional sponsorship is critical.
Institutional sponsorship commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Professional investors such as these retain teams of analysts that research thousands of stocks, so it is good validation to see them taking a postion in a stock you are considering.
Vectren Corp. (NYSE: VVC) 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 tracking the activity of these professional investors—and the moving averages they affect—it allows for traders to make more useful choices on trades.
With that in mind, Vectren Corp. (NYSE: VVC) now has a 50-day MA of $49.24 and 200-day MA of $50.12. It has traded in a 52-week range between $39.43 – 53.33 and today’s last price is 1.84%% lower than the 52 week high of $53.33.
Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors look for companies that have raised their earnings by at least 25% for 3 consecutive years.
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