AGCO Corporation (NYSE: AGCO) shares rose in value Wednesday Jan 4 with lower 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 opened higher on Wednesday as banking stocks led the Dow Jones Industrial Average closer to the 20,000 milestone.
The Dow DJIA, +0.18% gained 25 points, or 0.1%, to 19,906. The S&P 500 SPX, +0.36% climbed four points, or 0.2%, to 2,262. The Nasdaq Composite Index COMP, +0.50% added 13 points, or 0.3%, to 5,447.
Analysts at Deutsche Bank AG upgraded shares of AGCO Corporation (NYSE: AGCO) from Hold to Buy today. With a rating of Buy on the stock, AGCO Corporation has a 52-week high of $61.22. A number of other analysts have spoken on the stock in recent days, and the company has earned a consensus one-year price target of $55.00, less than the opening price of $58.90. Share prices often shift to the upside on recommendations and new price targets of professional brokerage firms.
AGCO Corporation (NYSE: AGCO) shares last traded at $59.69, which is a spike of $1.38 or 0.02 over the previous closing price. Opening at $58.90, they varied from $58.90 and $59.89 throughout the day.
AGCO Corporation (NYSE: AGCO) now has a market cap of 4.79B.
AGCO Corporation (NYSE: AGCO) Average Daily Trading Volume
127,302 shares traded hands yesterday, lower than the norm, out of a total float 60,353,000. lower than normal. Look for trading volume to pick up in the coming days as momentum traders often use swings in trading volume to identify heavy volume accumulation or distribution by institutional investors.
As with all potential breakouts, investors look for volume to be at least 40%-50% higher than normal on the breakout to show that fund managers and other professional investors are jumping in.
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 researching thousands of stocks. Thus, watching their interests is a good way to ensure you are buying the right stocks.
AGCO Corporation (NYSE: AGCO) 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 successful trades.
Trades for AGCO Corporation (NYSE: AGCO) have ranged from $42.40 – 61.22, and the stock now has a 50-day MA of $57.12 and 200-day MA of $50.92. Today’s last price is 0.03% lower than the 52 week high of $61.22.
Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors seek companies that have grown their earnings at least 25% or more for a 3 year period.
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