PayPal Holdings, Inc. (NASDAQ: PYPL) shares closed lower in early trading today on lower trade volume than normal after more analysts initiated coverage on the 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.
Analysts at Berenberg Bank initiated coverage on PayPal Holdings, Inc. (NASDAQ: PYPL) stock, starting the company at Buy. The company currently has a rating of Buy on the stock. As a means of comparison, a number of other analysts have issued reports on the company recently, and the company has earned a consensus one-year price target of $46.47, higher than the opening price of $41.40. PayPal Holdings, Inc. stock has a 52-week high of $44.52. Price changes targets are not unheard of as analysts and brokerage firms will re periodic updates after beginning or initiating coverage.
Shares of PayPal Holdings, Inc. (NASDAQ: PYPL) opened at $41.40 yesterday trading between $41.09 and $41.55, and last traded at $41.22, which is a dip of $0.18 compared to the previous closing price.
PayPal Holdings, Inc. (NASDAQ: PYPL) now has a market cap of 48.64B.
PayPal Holdings, Inc. (NASDAQ: PYPL) Average Daily Trading Volume
The stock’s average daily volume is 8,038,840 shares out of a total float 1,110,391,000 and some 552,789 shares traded hands yesterday, 27 percent below the norm. lower than normal. Look for trading volume to pick up in the coming days as momentum 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 is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors retain teams of analysts that investigate thousands of stocks, so it is good confirmation to see them taking a postion in a stock you are researching.
PayPal Holdings, Inc. (NASDAQ: PYPL) 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 investors to make those trends work in their favor and increase the number of successful trades.
With that in mind, PayPal Holdings, Inc. (NASDAQ: PYPL) now has a 50-day MA of $39.77 and 200-day MA of $39.15. It has traded in a 52-week range between $30.52 – 44.5200 and today’s last price is 7.40%% lower than the 52 week high of $44.52.
Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors watch for companies that have raised their earnings by at least 25% over a 3 year period.
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