El Paso Electric Company (NYSE: EE) shares rose in early trading today on lower 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 Williams Capital initiated coverage on El Paso Electric Company (NYSE: EE) stock, starting the company at Hold. With a rating of Hold on the shares, the company has a 52-week high of $48.75. As a means of comparison, a number of other analysts have issued reports on the stock in recent days, and the company has secured a consensus one-year price target of $48.75, higher than the opening price of $45.85, a difference of 10.54 percent. Price changes targets are not unheard of as analysts and brokerage firms will publish periodic updates after initiating coverage,.
Yesterday El Paso Electric Company (NYSE: EE) shares last traded at $46.25, which represents a spike of $0.15 over the previous closing price. Opening at $45.85, they ranged from $45.85 and $46.35 throughout the day.
El Paso Electric Company (NYSE: EE) currently has a market cap of 1.87B.
El Paso Electric Company (NYSE: EE) Average Daily Trading Volume
The stock’s average daily volume is 223,608 shares out of a total float 39,976,000 and some 18,659 shares traded hands yesterday, 86 percent lower than the average. lower than normal. Look for trading volume to pick up in the coming days as swing traders often use upticks 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.
Professional investors such as these have substantial teams of analysts researching thousands of stocks, so it is good confirmation to see them taking a postion in a stock you’re considering.
El Paso Electric Company (NYSE: EE) 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, El Paso Electric Company (NYSE: EE) now has a 50-day MA of $46.46 and 200-day MA of $46.05. It has traded in a 52-week range between $37.19 – 48.75 and today’s last price is 5.13%% lower than the 52 week high of $48.75.
Earnings growth is a crucial factor to research when investing in stocks and investors identify companies that have increased their earnings at least 25% or more over the past 3 years.
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