KLA-Tencor Corp. (NASDAQ: KLAC) shares fell on Monday Nov 21 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a downgraded rating.
Meanwhile, stocks were set to open higher this morning. The Dow Jones Industrial Average futures YMZ6, +0.20% was 10 points, or less than 0.1%, higher at 18,863, while S&P 500 index futures ESZ6, +0.44% rose 3.95 points, or 0.2%, at 2,184.75. Nasdaq-100 NQZ6, +0.74% added 12.25 points, or 0.2%, to 4,820.75.
Shares of KLA-Tencor Corp. (NASDAQ: KLAC) were downgraded by analysts at Vetr Inc. in a note to their investors today. With a rating of Hold on the shares, KLA-Tencor Corp. has a 52-week high of $80.43. The one-year price target of $78.32 is less than the opening price of $80.05, resulting a number of other analysts to issue statements on the stock recently. Downgrades happen when analysts believe that the future prospects for the security have weakened from the initial recommendation, often due to a material and crucial digression in the company’s operations, future outlook or industry.
KLA-Tencor Corp. (NASDAQ: KLAC) shares last traded at $80.00, a dip of $0.04 per share or -0.05% compared to the previous closing price. Opening at $80.05, they fluctuated from $79.91 and $80.43 throughout the day.
KLA-Tencor Corp. (NASDAQ: KLAC) currently has a market cap of 12.51B.
KLA-Tencor Corp. (NASDAQ: KLAC) Average Daily Trading Volume
The stock’s average daily volume is 2,185,340 shares out of a total float 155,705,000 and some 178,569 shares crossed the trading desk yesterday, below the norm. Trading volume is likely to increase in the next few days as investors often use upticks in trading volume to pinpoint heavy volume accumulation or dissemination by institutional investors.
While increased trading for short periods will not mean much, however, a trend of heavy trading volume on the buy side over a series of days or weeks expresses a positive signal to market traders that institutions may be moving in, so institutional sponsorship is crucial.
Institutional sponsorship commonly refers to 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 it is good corroboration to see them taking a postion in a stock you are researching.
KLA-Tencor Corp. (NASDAQ: KLAC) 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 spotting trends, moving averages allow traders to make those trends work in their favor and increase the number of winning trades.
With that in mind, KLA-Tencor Corp. (NASDAQ: KLAC) now has a 50-day MA of $73.79 and 200-day MA of $72.29. It has traded in a 52-week range between $62.33 – 80.43 and today’s last price is 0.53%% lower than the 52 week high of $80.43.
Earnings growth is an important factor to consider when investing in stocks and investors seek companies that have increased their earnings by at least 25% over a 3 year period.
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