Texas Instruments Incorporated (NASDAQ: TXN) shares rose 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 Credit Suisse Group upgraded shares of Texas Instruments Incorporated (NASDAQ: TXN) from Neutral to Outperform today. Credit Suisse Group currently has a rating of Outperform on the stock. The one-year price target of $75.02 is higher than the opening price of $74.51, that has caused a fair amount of other analysts to report on the stock in recent days. Looking back over the last year, Texas Instruments Incorporated stock has a high of $75.25. Usually, after analysts issue an upgrade report on a stock, they will later issue sporadic updates, such as a price target change.
Yesterday Texas Instruments Incorporated (NASDAQ: TXN) shares last traded at $74.91, which is an increase of $0.76 over the previous closing price. Opening at $74.51, they ranged from $74.50 and $75.22 throughout the day.
Texas Instruments Incorporated (NASDAQ: TXN) currently has a market cap of 74.87B.
Texas Instruments Incorporated (NASDAQ: TXN) Average Daily Trading Volume
The stock’s average daily volume is 5,202,410 shares out of a total float 996,647,000 and some 727,916 shares traded hands yesterday, 2 percent lower than the average. 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.
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 simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these retain teams of analysts that research thousands of stocks. Thus, watching their interests is a good way to ensure you are buying the right stocks.
Texas Instruments Incorporated (NASDAQ: TXN) 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.
With that in mind, Texas Instruments Incorporated (NASDAQ: TXN) now has a 50-day MA of $73.20 and 200-day MA of $69.39. It has traded in a 52-week range between $46.73 – 75.25 and today’s last price is 0.45%% lower than the 52 week high of $75.25.
Earnings growth is a crucial factor to look at when investing in stocks and investors seek companies that have grown their earnings at least 25% or more over a 3 year period.
DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of the website. Readers should not consider statements made by the author as formal recommendations and should consult their financial adviser before making any investment decisions. To read our full disclosure, please see our terms and conditions page.