Merck & Company, Inc. (MRK) Stock Up After Upgrade at Guggenheim

Merck & Company, Inc. (NYSE: MRK) shares rose in value in early trading today on lower 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 Guggenheim upgraded shares of Merck & Company, Inc. (NYSE: MRK) from Neutral to Buy today. With a rating of Buy on the stock, the company has a 52-week high of $65.46. A number of other analysts have commented on the company in recent days, and the company has secured a consensus one-year price target of $67.28, higher than the opening price of $62.53. Share prices sometimes get a spike to the upside when analysts upgrade a stock.

Yesterday Merck & Company, Inc. (NYSE: MRK) shares last traded at $62.94, a spike of $1.31 compared to the previous closing price. Opening at $62.53, they varied from $62.46 and $63.21 throughout the day.

Merck & Company, Inc. (NYSE: MRK) currently has a market cap of 173.53B.

Merck & Company, Inc. (NYSE: MRK) Average Daily Trading Volume

3,973,821 shares crossed the trading desk yesterday, 60 percent below normal, out of a total float 2,755,841,000. lower than normal. Look for trading volume to pick up in the coming days as swing traders 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 commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.

Professional investors such as these retain substantial teams of analysts that investigate thousands of stocks. So watching their interests is a good way to ensure you are buying the right stocks.

Merck & Company, Inc. (NYSE: MRK) 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, Merck & Company, Inc. (NYSE: MRK) now has a 50-day MA of $60.71 and 200-day MA of $61.12. It has traded in a 52-week range between $47.97 – 65.46 and today’s last price is 3.85%% lower than the 52 week high of $65.46.

Earnings growth is a critical factor to look at when investing in stocks and investors identify companies that have raised their earnings by at least 25% over 3 consecutive years.

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