Paychex, Inc. (NASDAQ: PAYX) shares rose in early trading today on lighter trade volume than normal after a number of analysts weighed in on the investing value of the stock, increasing the price target of 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.
Paychex, Inc. (NASDAQ: PAYX) had its price target raised by equities researchers at Sanford C. Bernstein from $59.00 to $60.81. With a rating of Market Perform on the shares, Paychex, Inc. has a 52-week high of $62.18. A number of other analysts have commented on the company recently, and the company has secured a consensus one-year price target of $57.80, less than the opening price of $61.11.
Yesterday Paychex, Inc. (NASDAQ: PAYX) shares last traded at $61.32, which is a jump of $0.51 from the previous closing price. Opening at $61.11, they fluctuated from $60.95 and $61.38 throughout the day.
Paychex, Inc. (NASDAQ: PAYX) currently has a market cap of 22.00B.
Paychex, Inc. (NASDAQ: PAYX) Average Daily Trading Volume
182,633 shares traded hands yesterday, 101 percent below the average, out of a total float 320,188,000. 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.
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.
Institutional investors such as these have substantial teams of analysts that research thousands of stocks, so it is good validation to see them buying a stock you’re considering.
Paychex, Inc. (NASDAQ: PAYX) 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.
Trades for Paychex, Inc. (NASDAQ: PAYX) have ranged from $45.76 – 62.18, and the stock now has a 50-day MA of $59.97 and 200-day MA of $58.70. Today’s last price is 1.38%% under the 52 week high of $62.18.
Earnings growth is a crucial factor to research when buying stocks and investors identify companies that have been successful at growing their earnings at least 25% or more over a 3 year period.
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