Analysts at Rodman & Renshaw initiated coverage on DragonWave Inc. (NASDAQ: DRWI) stock, rating the company at Buy with a price target of $4.00. As a means of comparison, a number of other analysts have commented on the shares recently, and the company has secured a consensus one-year price target of $10.36, $3.10. DragonWave Inc.stock has a 52-week high of $10.66.After beginning or initiating coverage, analysts and brokerage firms will subsequently issue periodic updates. Changes in price targets are not unusual.
Meanwhile U.S stocks were up on Tuesday after the long holiday weekend, with the NASDAQ establishing a new record closing high
The Dow Jones Industrial Average DJIA, +0.25% finished up 46.16 points, or 0.3%, at 18,538.12.
The S&P 500 index SPX, +0.30% rose 6.50 points, or 0.3%, to close at 2,186.48.
Meanwhile, the Nasdaq Composite Index COM P, +0.50% rose 26.01 points, or 0.5% to a new closing high of 5,275.91.
The Russell 2000 index RUT, +0.12% briefly touched a 52-week high of 1,254.41 Tuesday, and closed up fractionally just above 1,253.
Stock prices often move to the upside on recommendations and new price targets of professional analysts.
Shares of DragonWave Inc. (NASDAQ: DRWI) opened at $3.10 and traded in a range between, $3.01 and $3.10 yesterday, and last traded at $3.04, which represents a change of $ 0.01 over the previous closing price.
DragonWave Inc. (NASDAQ: DRWI) now has a market cap of 11.02M
The stocks average daily volume is 83,725 shares out of a total float 2,408,000 of and some 51,158 shares crossed the trading desk yesterday, 113 percent lower than normal. Look for trading volume to pick up in the coming days as investors often use upticks in trading volume to identify heavy volume accumulation or distribution by institutional investors.
However, a single day of heavy buy side trading is not enough to assert a trend. As such, market traders will continue to watch for institutional sponsorship as a signal that financial institutions are moving forward.
Institutional sponsorship simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors have teams of analysts researching thousands of stocks, so it is good confirmation to see them buying a stock you’re considering.
By identifying trends, moving averages allow investors to make those trends work in their favor and increase the number of winning trades.
With that in mind DragonWave Inc. (NASDAQ: DRWI) now has a 50-day MA is $3.45 and 200-day MA is $4.19, and it has traded in a 52-week range between $1.50 – 10.66 and today’s last price is -71.48 percent off the 52 week high.
Indeed, earnings growth is among the most important things to look in regards to stock investing and, accordingly, investors seek companies who have been successful at growing their earnings by at least 25 percent over a 3 year period.
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