Microsoft Corporation (NASDAQ: MSFT) shares rose 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 Microsoft Corporation (NASDAQ: MSFT) stock, starting the company at Outperform. With a rating of Outperform on the stock, the company has a 52-week high of $64.10. The one-year price target of $66.33 is higher than the opening price of $62.61, that has caused a number of other analysts to issue statements on the stock in recent days. After initiating coverage,, analysts and brokerage firms will subsequently re periodic updates. Changes in price targets are not unheard of.
Shares of Microsoft Corporation (NASDAQ: MSFT) opened at $62.61 yesterday and traded in a range between, $62.43 and $62.95, and last traded at $62.92, which represents a spike of $0.30 compared to the previous closing price.
Microsoft Corporation (NASDAQ: MSFT) currently has a market cap of 489.23B.
Microsoft Corporation (NASDAQ: MSFT) Average Daily Trading Volume
The stock’s average daily volume is 27,874,200 shares out of a total float 7,588,275,000 and some 2,170,942 shares crossed the trading desk yesterday, 115 percent lower than the average. 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.
As with all potential breakouts, investors look for volume to be at least 40%-50% higher than normal on the breakout to show that fund managers and other professional investors are jumping in.
Institutional sponsorship commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these retain substantial teams of analysts researching thousands of stocks. So watching their interests is a good way to ensure you are buying the right stocks.
Microsoft Corporation (NASDAQ: MSFT) 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.
Trades for Microsoft Corporation (NASDAQ: MSFT) have ranged from $48.03 – 64.10, and the stock now has a 50-day MA of $61.81 and 200-day MA of $57.95. Today’s last price is 1.84%% under the 52 week high of $64.10.
Earnings growth is a critical factor to research when buying stocks and investors seek companies that have been successful at growing their earnings by at least 25% for 3 consecutive years.
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