Rockwell Automation, Inc. (ROK) Shares Active after Upgrade at Morgan Stanley

Rockwell Automation, Inc. (NYSE: ROK) shares rose in value in early trading today on 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 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 Morgan Stanley upgraded shares of Rockwell Automation, Inc. (NYSE: ROK) from Underweight to Equal Weight today. With a rating of Equal Weight on the shares, the company has a 52-week high of $139.99. The one-year price target of $128.56 is a decrease compared to the opening price of $139.00, causing a number of other analysts to comment on the company in recent days. Share prices often trend to the upside on recommendations and new price targets of professional analysts.

Yesterday Rockwell Automation, Inc. (NYSE: ROK) shares last traded at $139.74, which represents a spike of $1.23 from the previous closing price. Opening at $139.00, they varied from $139.00 and $139.99 throughout the day.

Rockwell Automation, Inc. (NYSE: ROK) now has a market cap of 17.92B.

Rockwell Automation, Inc. (NYSE: ROK) Average Daily Trading Volume

195,627 shares traded hands yesterday, 57 percent lower than the average, out of a total float 127,473,000. 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.

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 just refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.

These instituitional investors retain teams of analysts researching thousands of stocks. Thus, watching their interests is a good way to make sure you are buying the right stocks.

Rockwell Automation, Inc. (NYSE: ROK) 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 investors to make those trends work in their favor and increase the number of successful trades.

With that in mind, Rockwell Automation, Inc. (NYSE: ROK) now has a 50-day MA of $135.43 and 200-day MA of $122.28. It has traded in a 52-week range between $87.53 – 139.99 and today’s last price is 0.18%% lower than the 52 week high of $139.99.

Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors identify companies that have grown their earnings by at least 25% over the past 3 years.

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