Vectren Corporation (NYSE: VVC) shares rose in value on Tuesday January 17 on lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile, in early trade, the Dow Jones Industrial Average was 47 points lower, or 0.24% to 19838, the S&P 500 fell 7 points, or 0.29% to 2267, while the Nasdaq was down 19 points, or 0.35% to 5554.
Analysts at Zacks Investment Research upgraded shares of Vectren Corporation (NYSE: VVC) from Hold to Buy today. The company currently has a rating of Buy on the stock. The one-year price target of $55.40 is higher than the opening price of $54.71, that has caused a fair amount of other analysts to comment on the company in recent days. Looking back over the last 52 weeks, Vectren Corporation stock has a high of $54.78. Share prices often shift to the upside on recommendations and new price targets of professional analysts.
Yesterday Vectren Corporation (NYSE: VVC) shares last traded at $54.70, which is a jump of $0.24 over the previous closing price. Opening at $54.71, they fluctuated from $54.40 and $54.78 throughout the day.
Vectren Corporation (NYSE: VVC) currently has a market cap of 4.53B.
Vectren Corporation (NYSE: VVC) Average Daily Trading Volume
10,642 shares crossed the trading desk yesterday, 64 percent lower than the average, out of a total float 82,693,000. lower than normal. Look for trading volume to pick up in the coming days as momentum traders often use increases in trading volume to identify heavy volume accumulation or distribution by institutional investors.
As with all potential breakouts, investors look for volume to be at least 40%-50% higher than 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.
Institutional investors such as these have substantial teams of analysts researching thousands of stocks. Thus, watching their interests is a good way to ensure you are buying the right stocks.
Vectren Corporation (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 identifying trends, moving averages allow traders to make those trends work in their favor and increase the number of successful trades.
Trades for Vectren Corporation (NYSE: VVC) have ranged from $39.43 – 54.78, and the stock now has a 50-day MA of $51.72 and 200-day MA of $50.36. Today’s last price is 0.15%% below the 52 week high of $54.78.
Earnings growth is a crucial factor to research when buying stocks and investors identify companies that have increased their earnings by at least 25% over a 3 year period.
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