Xerox Corporation (NYSE: XRX) 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 Goldman Sachs Group, Inc. (The) upgraded shares of Xerox Corporation (NYSE: XRX) from Neutral to Buy today. With a rating of Buy on the shares, Xerox Corporation has a 52-week high of $11.39. The one-year price target of $9.62 is above the opening price of $7.11, that has caused a number of other analysts to report on the company recently. Typically, after analysts issue an upgrade report on a stock, they will later issue other updates, such as a price target change.
Yesterday Xerox Corporation (NYSE: XRX) shares last traded at $7.07, a spike of $0.10 compared to the previous closing price. Opening at $7.11, they ranged from $7.01 and $7.11 throughout the day.
Xerox Corporation (NYSE: XRX) currently has a market cap of 7.17B.
Xerox Corporation (NYSE: XRX) Average Daily Trading Volume
2,800,579 shares traded hands yesterday, 115 percent below the norm, out of a total float 848,662,000. 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, conversely, 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.
These instituitional investors retain teams of analysts researching thousands of stocks. Thus, watching their interests is a good way to make sure you are buying the right stocks.
Xerox Corporation (NYSE: XRX) 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, Xerox Corporation (NYSE: XRX) now has a 50-day MA of $8.89 and 200-day MA of $9.52. It has traded in a 52-week range between $6.46 – 11.39 and today’s last price is 37.93%% lower than the 52 week high of $11.39.
Earnings growth is a critical factor to research when investing in stocks and investors watch for companies that have been successful at growing their earnings at least 25% or more for 3 consecutive years.
DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of the website. Readers should not consider statements made by the author as formal recommendations and should consult their financial adviser before making any investment decisions. To read our full disclosure, please see our terms and conditions page.