Adobe Systems Incorporated (NASDAQ: ADBE) shares fell in early trading today on lighter trade volume than normal after more analysts initiated coverage on the stock.
Meanwhile in early trading, the Dow Jones Industrial Average DJIA, +0.31% rose 24 points, or 0.1%, to 19,883, while the S&P 500 index ESH7, +0.13% dipped less than 1 point to 2,268. The Nasdaq Composite COMP, +0.02% which reached its fourth-straight record close on Tuesday, rose 1 point to 5,553.
Analysts at Wells Fargo & Company initiated coverage on Adobe Systems Incorporated (NASDAQ: ADBE) stock, rating the company at Market Perform. With a rating of Market Perform on the shares, the company has a 52-week high of $111.09. The one-year price target of $122.60 is higher than the opening price of $108.23, resulting a fair amount of other analysts to issue statements on the stock in recent days. Changes in price targets are not unusual as analysts and brokerage firms will issue periodic updates after initiating coverage,.
Shares of Adobe Systems Incorporated (NASDAQ: ADBE) opened at $108.23 yesterday trading between $108.00 and $108.57, and last traded at $108.25, which represents a decrease of $0.01 compared to the previous closing price.
Adobe Systems Incorporated (NASDAQ: ADBE) now has a market cap of 53.65B.
Adobe Systems Incorporated (NASDAQ: ADBE) Average Daily Trading Volume
188,843 shares traded hands yesterday, 38 percent below the average, out of a total float 493,901,000. lower than normal. Look for trading volume to pick up in the coming days as investors 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 simply refers to 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 watching their interests is a good way to ensure you are buying the right stocks.
Adobe Systems Incorporated (NASDAQ: ADBE) 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 spotting trends, moving averages allow traders to make those trends work in their favor and increase the number of winning trades.
Trades for Adobe Systems Incorporated (NASDAQ: ADBE) have ranged from $71.27 – 111.09, and the stock now has a 50-day MA of $104.26 and 200-day MA of $102.65. Today’s last price is 2.56%% under the 52 week high of $111.09.
Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors look for companies that have raised their earnings at least 25% or more for the past 3 years.
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