Waddell & Reed Financial, Inc. (NYSE: WDR) 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.
Jefferies Group analysts reiterated its Neutral rating on Waddell & Reed Financial, Inc. (NYSE: WDR) in a note to investors, making it one of the more closely watched stocks on Wall Street. With a rating of Neutral on the shares, Waddell & Reed Financial, Inc. has a 52-week high of $27.44. As a means of comparison, a number of other analysts have spoken on the company in recent days, and Waddell & Reed Financial, Inc. has secured a consensus one-year price target of $17.07, a decrease compared to the opening price of $19.26, a difference of 8.84 percent. Share prices sometimes get a jump to the upside when analysts reiterate coverage.
Shares of Waddell & Reed Financial, Inc. (NYSE: WDR) opened at $19.26 yesterday and traded in a range between, $19.05 and $19.32, and last traded at $19.32, a jump of $0.06 from the previous closing price.
Waddell & Reed Financial, Inc. (NYSE: WDR) currently has a market cap of 1.60B.
Waddell & Reed Financial, Inc. (NYSE: WDR) Average Daily Trading Volume
40,045 shares crossed the trading desk yesterday, 70 percent lower than the average, out of a total float 79,417,000. lower than normal. Look for trading volume to pick up in the coming days as swing traders often use swings 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 just refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors retain teams of analysts researching thousands of stocks. Thus, watching their interests is a good way to ensure you are buying the right stocks.
Waddell & Reed Financial, Inc. (NYSE: WDR) 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 Waddell & Reed Financial, Inc. (NYSE: WDR) have ranged from $15.02 – 27.44, and the stock now has a 50-day MA of $20.08 and 200-day MA of $18.43. Today’s last price is 29.59%% lower than the 52 week high of $27.44.
Earnings growth is an important factor to research when buying stocks and investors identify companies that have been successful at growing their earnings at least 25% or more over 3 consecutive years.
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