Verizon Communications Inc. (NYSE: VZ) 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 Verizon Communications Inc. (NYSE: VZ) from Sell to Hold today. The company currently has a rating of Hold on the shares. As a means of comparison, a number of other analysts have commented on the company in recent days, and Verizon Communications Inc. has earned a consensus one-year price target of $52.77, a decrease compared to the opening price of $53.22, a difference of 9.98 percent. Verizon Communications Inc. stock has a 52-week high of $56.95. Stock prices sometimes get a jump to the upside when analysts upgrade a stock.
Yesterday Verizon Communications Inc. (NYSE: VZ) shares last traded at $52.87, a drop of $0.39 compared to the previous closing price. Opening at $53.22, they ranged from $52.69 and $53.26 throughout the day.
Verizon Communications Inc. (NYSE: VZ) currently has a market cap of 215.53B.
Verizon Communications Inc. (NYSE: VZ) Average Daily Trading Volume
The stock’s average daily volume is 14,415,900 shares out of a total float 4,060,368,000 and some 2,089,901 shares crossed the trading desk yesterday, 8 percent below the average. lower than normal. Look for trading volume to pick up in the coming days as investors often use upticks in trading volume to identify heavy volume accumulation or distribution by institutional investors.
While increased trading for one day will not mean much, however, 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.
Institutional investors such as these have substantial teams of analysts that investigate thousands of stocks. So watching their interests is a good way to make sure you are buying the right stocks.
Verizon Communications Inc. (NYSE: VZ) 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 winning trades.
With that in mind, Verizon Communications Inc. (NYSE: VZ) now has a 50-day MA of $51.82 and 200-day MA of $52.07. It has traded in a 52-week range between $43.79 – 56.95 and today’s last price is 7.16%% lower than the 52 week high of $56.95.
Earnings growth is a critical factor to look at when buying stocks and investors seek companies that have been successful at growing their earnings at least 25% or more for 3 consecutive years.
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