Square Inc. (NYSE: SQ) shares rose in value Monday Nov 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 as investors continued to try and decipher policy proposals of President-elect Donald Trump’s administration, the Dow Jones Industrial Average DJIA, +0.11% rose 21.03 points, or 0.1%, to finish at 18,868.69, its third straight record close. The blue-chip index had also touched a historic high of 18,934.05 during the session.
The S&P 500 index SPX, -0.01% fell 0.25 points to end at 2,164.20, and the Nasdaq Composite COMP, -0.36% dropped 18.72 points, or 0.4%, to close at 5,218.40.
Analysts at Pacific Crest upgraded shares of Square Inc. (NYSE: SQ) from Sector Weight to Overweight today. With a rating of Overweight on the shares, Square Inc. has a 52-week high of $15.91. As a means of comparison, a number of other analysts have spoken on the stock recently, and the company has earned a consensus one-year price target of $13.30, above the opening price of $12.12. Share prices often trend to the upside on recommendations and new price targets of professional analysts.
Shares of Square Inc. (NYSE: SQ) opened at $12.12 on Monday trading between $12.12 and $12.62, and last traded at $12.35, an increase of $0.47 or 3.96% over the previous closing price.
Square Inc. (NYSE: SQ) now has a market cap of 4.35B.
Square Inc.Average Daily Trading Volume
19,712,966 shares traded hands yesterday, above the average, out of a total float 186,464,000. Significant increases in trading volume and price inflation together could signal considerable volume accumulation by institutional investors.
While higher trading for one day will not mean much, conversely, a trend of heavy trading volume on the buy side over a period of days or weeks delivers a positive indicator to market traders that institutions may be moving in, so institutional sponsorship is crucial.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors retain teams of analysts researching thousands of stocks. So watching their interests is a good way to ensure you are buying the right stocks.
Square Inc. 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, Square Inc. (NYSE: SQ) now has a 50-day MA of $11.52 and 200-day MA of $10.80. It has traded in a 52-week range between $8.06 – 15.91 and today’s last price is 22.38%% lower than the 52 week high of $15.91.
Earnings growth is a critical factor to consider when buying stocks and investors identify companies that have grown their earnings by at least 25% over 3 consecutive years.
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