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 KeyCorp 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 issued reports on the company in recent days, and Square Inc. has secured a consensus one-year price target of $13.30, above the opening price of $12.12. Stock prices often shift to the upside on recommendations and new price targets of professional analysts.
Square Inc. (NYSE: SQ) shares last traded at $12.35, which represents a spike of $0.47 or 3.96% over the previous closing price. Opening at $12.12, they varied from $12.12 and $12.62 throughout the day.
Square Inc. (NYSE: SQ) now has a market cap of 4.35B.
Square Inc.Average Daily Trading Volume
The stock’s average daily volume is 4,452,480 shares out of a total float 186,464,000 and some 19,712,966 shares traded hands yesterday, higher than normal. Large expansions in trading volume and price inflation together could signal excessive volume aggregation by institutional investors.
However, just a day of high volume buy side trading is not enough to affirm a trend. As such, market traders will continue to look for institutional sponsorship as a signal 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.
Institutional investors such as these have substantial teams of analysts that investigate thousands of stocks, so it is good validation to see them buying a stock you’re considering.
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 traders to make those trends work in their favor and increase the number of winning 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.
Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors watch for companies that have raised their earnings by at least 25% over the past 3 years.
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