Cirrus Logic Inc. (NASDAQ: CRUS) shares rose on Monday Nov 21 with lighter trade volume than normal after more analysts initiated coverage on the stock.
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.
Analysts at Craig Hallum initiated coverage on Cirrus Logic Inc. (NASDAQ: CRUS) stock, starting the company at Hold. With a rating of Hold on the shares, Cirrus Logic Inc. has a 52-week high of $59.50. As a means of comparison, a number of other analysts have commented on the stock recently, and Cirrus Logic Inc. has secured a consensus one-year price target of $64.71, higher than the opening price of $57.75, a difference of 11.11 percent. Changes in price targets are not unusual as analysts and brokerage firms will re periodic updates after beginning or initiating coverage.
Cirrus Logic Inc. (NASDAQ: CRUS) shares last traded at $58.26, which is a spike of $0.47 or 0.81% from the previous closing price. Opening at $57.75, they ranged from $57.51 and $59.50 throughout the day.
Cirrus Logic Inc. (NASDAQ: CRUS) currently has a market cap of 3.71B.
Cirrus Logic Inc. (NASDAQ: CRUS) Average Daily Trading Volume
The stock’s average daily volume is 1,217,830 shares out of a total float 63,350,000 and some 268,320 shares crossed the trading desk yesterday, below the norm. Trading volume is likely to increase in the next few days as momentum traders often use swings in trading volume to identify large volume growth or distribution by institutional investors.
However, one day of heavy buy side trading is not enough to assert a trend. So market traders will continue to watch for institutional sponsorship as a cue that financial institutions are moving forward.
Institutional sponsorship just refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Professional investors such as these have teams of analysts that research thousands of stocks. So watching their interests is a good way to make sure you are buying the right stocks.
Cirrus Logic Inc. (NASDAQ: CRUS) 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.
Traders can make well planned trades when they track the activity of professional investors.
With that in mind, Cirrus Logic Inc. (NASDAQ: CRUS) now has a 50-day MA of $54.06 and 200-day MA of $45.82. It has traded in a 52-week range between $25.09 – 59.50 and today’s last price is 2.08%% lower than the 52 week high of $59.50.
Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors look for companies that have raised their earnings at least 25% or more for the past 3 years.
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