Timken Co. (NYSE: TKR) shares rose in value Thursday December 29 with slower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile, U.S. stocks were little changed in early trade Thursday. The S&P 500 SPX, +0.04% rose 0.1% to 2,252, while the Dow DJIA, +0.04% advanced 16 points to 19,850. The Nasdaq Composite COMP, -0.04% was virtually flat at 5,439.
Analysts at Zacks Investment Research upgraded shares of Timken Co. (NYSE: TKR) from Sell to Hold today. With a rating of Hold on the shares, the company has a 52-week high of $41.15. A number of other analysts have commented on the stock in recent days, and Timken Co. has secured a consensus one-year price target of $37.17, a decrease compared to the opening price of $40.05. Stock prices sometimes get a jump to the upside when analysts upgrade a stock.
Timken Co. (NYSE: TKR) shares last traded at $40.15, a spike of $0.20 or 0.50% over the previous closing price. Opening at $40.05, they fluctuated from $40.00 and $40.25 throughout the day.
Timken Co. (NYSE: TKR) now has a market cap of 3.12B.
Timken Co. (NYSE: TKR) Average Daily Trading Volume
The stock’s average daily volume is 643,921 shares out of a total float 73,752,000 and some 11,379 shares crossed the trading desk yesterday, below the average. Swing traders often use increases in trading volume to identify heavy volume accumulation or dissemination by institutional investors, so look for trading volume to pick up in the coming days.
While higher trading for short periods will not mean much, conversely, a trend of heavy trading volume on the buy side over a series of days or weeks delivers a positive signal to market traders that institutions may be moving in, so institutional sponsorship is crucial.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors have substantial teams of analysts that research thousands of stocks. So watching their interests is a good way to ensure you are buying the right stocks.
Timken Co. (NYSE: TKR) 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 marking the activity of these professional investors—and the moving averages they affect—it allows for traders to make more useful judgments on trades.
Trades for Timken Co. (NYSE: TKR) have ranged from $22.22 – 41.15, and the stock now has a 50-day MA of $39.43 and 200-day MA of $34.63. Today’s last price is 2.43%% lower than the 52 week high of $41.15.
Earnings growth is a crucial factor to look at when buying stocks and investors identify companies that have grown their earnings by at least 25% over the past 3 years.
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