Analysts at Rodman & Renshaw initiated coverage on DragonWave Inc. (NASDAQ: DRWI) stock, starting the company at Buy and 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 earned a consensus one-year price target of $13.35, $3.10. DragonWave Inc.stock has a 52-week high of $10.66.
U.S. stocks finished August with its second consecutive day of losses, albeit moderately. Volume for the day was less than stellar as traders readied themselves for a long holiday weekend.
The Dow Jones Industrial Average fell 53 points, or 0.29 percent, to 18,401.
The S&P 500 shed a little more than 5 points, or 0.24 percent, to close at 2,171.
The Nasdaq lost 10 points, or 0.19 percent, to finish at 5,213.
Share prices sometimes get a bounce to the upside when analysts inititate coverage.
Shares of DragonWave Inc. (NASDAQ: DRWI) opened at $3.10 and traded in a range between, $3.02 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 82,535 shares out of a total float 2,408,000 of and some 32,776 shares crossed the trading desk yesterday, 58 percent lower than normal. Look for trading volume to pick up in the coming days as momentum traders 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.
Professional investors such as these retain substantial teams of analysts that research thousands of stocks. Thus, watching their interests is a good way to ensure you are buying the right stocks.
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 DragonWave Inc. (NASDAQ: DRWI) now has a 50-day MA is $3.55 and 200-day MA is $4.14, 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.
Earnings growth is an important factor to look at when buying stocks and investors look for companies that have grown their earnings at least 25% or more for the past 3 years.
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