Apple Inc. (NASDAQ: AAPL) shares rose in early trading today on lighter trade volume than normal after a number of analysts weighed in on the investing value of the stock, raising the price target of stock.
Meanwhile, U.S. stocks edged lower Monday, with major indexes retreating from record levels.
The Dow Jones Industrial Average DJIA, -0.31% fell 48 points, or 0.2%, to 19,916, while the S&P 500 index SPX, -0.29% lost 5 points to 2,272, a drop of 0.2%. The Nasdaq Composite Index COMP, -0.03% rose 4 points to 5,529, a gain of about 0.1%.
Apple Inc. (NASDAQ: AAPL) had its price target raised by equities researchers at Morgan Stanley from $0.00 to $148.00. The company currently has a rating of Buy on the shares. A number of other analysts have commented on the stock recently, and the company has earned a consensus one-year price target of $132.25, above the opening price of $117.95. Apple Inc. stock has a 52-week high of $119.30.
Shares of Apple Inc. (NASDAQ: AAPL) opened at $117.95 yesterday and traded in a range between, $117.94 and $119.30, and last traded at $119.20, a jump of $1.29 compared to the previous closing price.
Apple Inc. (NASDAQ: AAPL) now has a market cap of 635.61B.
Apple Inc. (NASDAQ: AAPL) Average Daily Trading Volume
8,797,598 shares crossed the trading desk yesterday, 23 percent lower than normal, out of a total float 5,313,329,000. lower than normal. Look for trading volume to pick up in the coming days as swing traders often use increases 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 commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these have teams of analysts that investigate thousands of stocks. Thus, watching their interests is a good way to ensure you are buying the right stocks.
Apple Inc. (NASDAQ: AAPL) 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 tracking the activity of these professional investors—and the moving averages they affect—it allows for traders to make more effective decisions on trades.
With that in mind, Apple Inc. (NASDAQ: AAPL) now has a 50-day MA of $113.88 and 200-day MA of $108.94. It has traded in a 52-week range between $89.47 – 119.30 and today’s last price is 0.08%% lower than the 52 week high of $119.30.
Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors seek companies that have increased their earnings by at least 25% over a 3 year period.
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