Weyerhaeuser Company (NYSE: WY) 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 Raymond James Financial, Inc. upgraded shares of Weyerhaeuser Company (NYSE: WY) from Outperform to Strong-Buy today. With a rating of Strong-Buy on the shares, the company has a 52-week high of $33.28. As a means of comparison, a number of other analysts have commented on the company in recent days, and Weyerhaeuser Company has secured a consensus one-year price target of $34.67, higher than the opening price of $31.10, a difference of 11.15 percent. Share prices often trend to the upside on recommendations and new price targets of professional analysts.
Yesterday Weyerhaeuser Company (NYSE: WY) shares last traded at $31.09, which represents a spike of $0.24 compared to the previous closing price. Opening at $31.10, they ranged from $30.87 and $31.25 throughout the day.
Weyerhaeuser Company (NYSE: WY) currently has a market cap of 23.26B.
Weyerhaeuser Company (NYSE: WY) Average Daily Trading Volume
The stock’s average daily volume is 3,800,290 shares out of a total float 739,410,000 and some 355,871 shares crossed the trading desk yesterday, 32 percent below normal. 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.
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 commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these retain 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.
Weyerhaeuser Company (NYSE: WY) 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, Weyerhaeuser Company (NYSE: WY) now has a 50-day MA of $31.22 and 200-day MA of $31.05. It has traded in a 52-week range between $22.06 – 33.28 and today’s last price is 6.58%% lower than the 52 week high of $33.28.
Earnings growth is a crucial factor to consider when buying stocks and investors seek companies that have raised their earnings at least 25% or more for a 3 year period.
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