Check Point Software Technologies Ltd. (NASDAQ: CHKP) shares slid back in value in early trading today on slower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile, U.S. stocks opened significantly lower in early trading. The Dow Jones Industrial Average was 58 points lower, or 0.29% to 19895, the S&P 500 fell 7 points, or 0.28% to 2268, while the Nasdaq dropped 22 points, or 0.38% to 5542.
Analysts at Zacks Investment Research upgraded shares of Check Point Software Technologies Ltd. (NASDAQ: CHKP) from Hold to Strong-Buy today. Zacks Investment Research currently has a rating of Strong-Buy on the shares. A number of other analysts have issued reports on the company recently, and the company has earned a consensus one-year price target of $84.79, lower than the opening price of $88.35, a difference of 9.61 percent. Check Point Software Technologies Ltd. stock has a 52-week high of $89.98. Usually, after analysts assign an upgrade report on a stock, they will subsequently issue periodic revisions, usually followed by a price target change.
Shares of Check Point Software Technologies Ltd. (NASDAQ: CHKP) opened at $88.35 yesterday and traded in a range between, $87.73 and $88.47, and last traded at $88.25, which represents a drop of $0.25 from the previous closing price.
Check Point Software Technologies Ltd. (NASDAQ: CHKP) now has a market cap of 14.92B.
Check Point Software Technologies Ltd. (NASDAQ: CHKP) Average Daily Trading Volume
132,114 shares traded hands yesterday, 12 percent lower than the norm, out of a total float 124,357,000. lower than normal. Look for trading volume to pick up in the coming days as swing traders often use increases 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 just refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Professional investors such as these have teams of analysts researching thousands of stocks, so it is good corroboration to see them buying a stock you’re researching.
Check Point Software Technologies Ltd. (NASDAQ: CHKP) 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, Check Point Software Technologies Ltd. (NASDAQ: CHKP) now has a 50-day MA of $84.36 and 200-day MA of $79.93. It has traded in a 52-week range between $71.64 – 89.980 and today’s last price is 1.93%% lower than the 52 week high of $89.98.
Earnings growth is a critical factor to research when investing in stocks and investors watch for companies that have increased their earnings by at least 25% for 3 consecutive years.
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