NOW Inc. (NYSE: DNOW) 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.
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.
Analysts at Susquehanna upgraded shares of NOW Inc. (NYSE: DNOW) from Neutral to Positive today. The company currently has a rating of Positive on the shares. The one-year price target of $19.89 is a decrease compared to the opening price of $20.60, causing a number of other analysts to issue statements on the company recently. Looking back over the last year, NOW Inc. stock has a high of $23.53. Stock prices sometimes get a jump to the upside when analysts upgrade a stock.
Yesterday NOW Inc. (NYSE: DNOW) shares last traded at $20.66, a spike of $0.77 from the previous closing price. Opening at $20.60, they varied from $20.33 and $20.84 throughout the day.
NOW Inc. (NYSE: DNOW) currently has a market cap of 2.22B.
NOW Inc. (NYSE: DNOW) Average Daily Trading Volume
94,884 shares traded hands yesterday, 51 percent lower than the norm, out of a total float 103,903,000. 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.
While increased trading for short periods will not mean much 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 just refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors have teams of analysts that research thousands of stocks, so it is good corroboration to see them taking a postion in a stock you’re considering.
NOW Inc. (NYSE: DNOW) 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, NOW Inc. (NYSE: DNOW) now has a 50-day MA of $21.57 and 200-day MA of $20.49. It has traded in a 52-week range between $12.03 – 23.53 and today’s last price is 12.20%% lower than the 52 week high of $23.53.
Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors seek companies that have grown their earnings by at least 25% over the past 3 years.
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