Veritiv Corporation (NYSE: VRTV) 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 Bank of America Corporation initiated coverage on Veritiv Corporation (NYSE: VRTV) stock, starting the company at Buy. With a rating of Buy on the stock, the company has a 52-week high of $56.70. The one-year price target of $45.00 is less than the opening price of $53.10, resulting a number of other analysts to report on the company in recent days. Price changes targets are not unusual as analysts and brokerage firms will re periodic updates after initiating coverage,.
Yesterday Veritiv Corporation (NYSE: VRTV) shares last traded at $54.15, which represents a spike of $1.45 over the previous closing price. Opening at $53.10, they ranged from $53.10 and $54.20 throughout the day.
Veritiv Corporation (NYSE: VRTV) currently has a market cap of 866.45M.
Veritiv Corporation (NYSE: VRTV) Average Daily Trading Volume
The stock’s average daily volume is 84,336 shares out of a total float 6,739,000 and some 3,811 shares crossed the trading desk yesterday, 121 percent below the norm. lower than normal. Look for trading volume to pick up in the coming days as investors 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, however, 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 instituitional investors have teams of analysts that investigate thousands of stocks. So watching their interests is a good way to make sure you are buying the right stocks.
Veritiv Corporation (NYSE: VRTV) 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 successful trades.
With that in mind, Veritiv Corporation (NYSE: VRTV) now has a 50-day MA of $51.58 and 200-day MA of $48.83. It has traded in a 52-week range between $27.44 – 56.70 and today’s last price is 4.50%% lower than the 52 week high of $56.70.
Earnings growth is a crucial factor to look at when buying stocks and investors identify companies that have increased their earnings at least 25% or more for 3 consecutive years.
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