Analysts at Zacks Investment Research upgraded shares of Polycom Inc. (NASDAQ: PLCM) from Sell to Hold today. With a rating of Hold on the stock, the company has a 52-week high of $14.09. The one-year price target of $13.09 is above the opening price of $12.46, resulting a fair amount of other analysts to report on the stock recently. Stock prices sometimes get a spike to the upside when analysts upgrade a stock.
U.S. stocks closed higher Tuesday as investors anticipate the results of meetings from the Federal Reserve and the Bank of Japan.
The Dow Jones Industrial Average DJIA, +0.05% rose 9.79 points, or less than 0.1%, to close at 18,129.96.
The S&P 500 index SPX, +0.03% advanced 0.64 points to finish at 2,139.76, led by gains in the health-care and consumer-staples sectors.
The Nasdaq Composite index COMP, +0.12% gained 6.33 points, or 0.1%, to close at 5,241.35.
Yesterday Polycom Inc. (NASDAQ: PLCM) shares last traded at $12.47, a drop of $0.01 from the previous closing price. Opening at $12.46, they varied from $12.46 and $12.47 throughout the day.
Polycom Inc. (NASDAQ: PLCM) currently has a market cap of 1.69B.
350,835 shares crossed the trading desk yesterday, 39 percent below normal, out of a total float 134,731,000. Momentum traders often use upticks in trading volume to pinpoint heavy volume aggregation or circulation by institutional investors, so trading volume is likely to increase in the next few days.
However, a single day of high volume buy side trading is not enough to assert a trend. So market traders will continue to watch for institutional sponsorship as a signal that financial institutions are moving forward.
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, so it is good confirmation to see them buying a stock you’re considering.
Traders are able to make make more impactful judgments on trades when they track the activity of professional investors.
With that in mind, Polycom Inc. (NASDAQ: PLCM) now has a 50-day MA of $12.44 and 200-day MA of $11.84. It has traded in a 52-week range between $8.79 – 14.090 and today’s last price is 0.12% lower than the 52 week high of $14.09.
Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors seek companies that have increased their earnings by at least 25% for the past 3 years.
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