Time Warner Inc. (NYSE: TWX) shares rose in early trading today on lower trade volume than normal after a number of analysts weighed in on the investing value of the stock and reiterated thier respective ratings.
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 Albert Fried & Company reiterated a Hold rating on shares of Time Warner Inc. (NYSE: TWX) in a reserach note to investors, making it one of the more actively watched stocks on Wall Street. The company currently has a rating of Hold on the stock. The one-year price target of $103.40 is above the opening price of $93.09, causing a fair amount of other analysts to comment on the stock recently. Looking back over the last year, Time Warner Inc. stock has a high of $97.21. Usually, after analysts issue a “reiterated rating” report on a stock, they will later issue periodic updates, such as a price target change.
Shares of Time Warner Inc. (NYSE: TWX) opened at $93.09 yesterday trading between $92.65 and $93.81, and last traded at $93.81, which represents an increase of $0.41 compared to the previous closing price.
Time Warner Inc. (NYSE: TWX) currently has a market cap of 72.34B.
Time Warner Inc. (NYSE: TWX) Average Daily Trading Volume
934,693 shares crossed the trading desk yesterday, 16 percent below the norm, out of a total float 770,150,000. lower than normal. Look for trading volume to pick up in the coming days as momentum traders often use swings 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 professional investors have substantial teams of analysts researching thousands of stocks. So watching their interests is a good way to make sure you are buying the right stocks.
Time Warner Inc. (NYSE: TWX) 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, Time Warner Inc. (NYSE: TWX) now has a 50-day MA of $94.70 and 200-day MA of $83.66. It has traded in a 52-week range between $55.53 – 97.21 and today’s last price is 3.50%% lower than the 52 week high of $97.21.
Earnings growth is an important factor to consider when buying stocks and investors identify companies that have increased their earnings by at least 25% for the past 3 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.