American Express Company (NYSE: AXP) shares rose in early trading today on lower trade volume than normal after a number of analysts weighed in on the investing value of the stock, boosting the price target of stock.
U.S. stocks flipped between small losses and gains early Tuesday morning as investors maintained a cautious stance following a sharp postelection rally.
The S&P 500 index SPX, -0.04% was off by about 1 point, or less than 0.1%, at 2,267, with seven of the 11 main sectors trading lower. The Dow Jones Industrial Average DJIA, -0.13% was off 33 points, or 0.2%, to 19,853.
Meanwhile, the Nasdaq Composite Index COMP, +0.05% traded in record territory, after closing at an all-time high for the second session in a row on Monday.
American Express Company (NYSE: AXP) had its price target increased by equities researchers at Bank of America Corporation from $75.86 to $98.00. With a rating of Market Perform on the shares, the company has a 52-week high of $77.50. The one-year price target of $75.96 is lower than the opening price of $76.52, that has caused a number of other analysts to comment on the company in recent days.
Shares of American Express Company (NYSE: AXP) opened at $76.52 yesterday and traded in a range between, $76.12 and $77.50, and last traded at $77.13, a jump of $1.27 over the previous closing price.
American Express Company (NYSE: AXP) now has a market cap of 70.59B.
American Express Company (NYSE: AXP) Average Daily Trading Volume
The stock’s average daily volume is 4,626,420 shares out of a total float 761,382,000 and some 1,399,870 shares traded hands yesterday, 7 percent lower than the average. 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 commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these have substantial teams of analysts researching thousands of stocks, so it is good validation to see them buying a stock you’re considering.
American Express Company (NYSE: AXP) 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, American Express Company (NYSE: AXP) now has a 50-day MA of $73.91 and 200-day MA of $66.77. It has traded in a 52-week range between $50.27 – 77.50 and today’s last price is 0.48%% lower than the 52 week high of $77.50.
Earnings growth is a crucial factor to look at when buying stocks and investors seek companies that have grown their earnings at least 25% or more over 3 consecutive years.
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