Cognizant Technology Solutions Corporation (NASDAQ: CTSH) shares slid back in value in early trading today on 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 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%.
Analysts at Vetr Inc. upgraded shares of Cognizant Technology Solutions Corporation (NASDAQ: CTSH) from Buy to Strong-Buy today. The company currently has a rating of Strong-Buy on the stock. A number of other analysts have issued reports on the stock in recent days, and the company has secured a consensus one-year price target of $63.71, above the opening price of $57.60, a difference of 11.12 percent. Cognizant Technology Solutions Corporation stock has a 52-week high of $63.43. Stock prices sometimes get a boost to the upside when analysts upgrade a stock.
Shares of Cognizant Technology Solutions Corporation (NASDAQ: CTSH) opened at $57.60 yesterday and traded in a range between, $57.05 and $57.75, and last traded at $57.29, which represents a decrease of $0.58 from the previous closing price.
Cognizant Technology Solutions Corporation (NASDAQ: CTSH) currently has a market cap of 34.76B.
Cognizant Technology Solutions Corporation (NASDAQ: CTSH) Average Daily Trading Volume
The stock’s average daily volume is 6,220,690 shares out of a total float 603,003,000 and some 540,926 shares crossed the trading desk yesterday, 95 percent below normal. lower than normal. Look for trading volume to pick up in the coming days as investors often use swings in trading volume to identify heavy volume accumulation or distribution by institutional investors.
While increased trading for one day will not mean much, conversely, a trend of heavy trading volume on the buy side over a period of days or weeks sends a positive signal to market traders that institutions may be moving in, so institutional sponsorship is very important.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors have teams of analysts that research thousands of stocks, so it is good validation to see them taking a postion in a stock you are considering.
Cognizant Technology Solutions Corporation (NASDAQ: CTSH) 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 spotting trends, moving averages allow investors to make those trends work in their favor and increase the number of successful trades.
Trades for Cognizant Technology Solutions Corporation (NASDAQ: CTSH) have ranged from $45.44 – 63.4300, and the stock now has a 50-day MA of $55.82 and 200-day MA of $55.48. Today’s last price is 9.68%% lower than the 52 week high of $63.43.
Earnings growth is a crucial factor to research 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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