Old Dominion Freight Line, Inc. (NASDAQ: ODFL) shares rose in early trading yesterday lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a downgraded rating.
Meanwhile, in early trading today the Dow Jones Industrial Average DJIA, +0.19% rose 40 points, or 0.2%, to 19,929 while the S&P 500 SPX, +0.31% added 5 points to 2,275, a rise of 0.2%. The Nasdaq Composite Index COMP, +0.53% climbed 19 points, or 0.3%, to 5,567.
Analysts at Zacks Investment Research downgraded shares of Old Dominion Freight Line, Inc. (NASDAQ: ODFL) from Buy to Hold in a research note to investors today. Zacks Investment Research currently has a rating of Hold on the stock. A number of other analysts have commented on the company in recent days, and Old Dominion Freight Line, Inc. has secured a consensus one-year price target of $88.17, higher than the opening price of $87.30, a difference of 10.01 percent. Old Dominion Freight Line, Inc. stock has a 52-week high of $91.69. Important and fundamental digressions in the company’s actions, future direction or industry can cause downgrades as the analysts consider that the future prospects for the security have weakened from the initial recommendation.
Shares of Old Dominion Freight Line, Inc. (NASDAQ: ODFL) opened at $87.30 yesterday trading between $87.12 and $88.34, and last traded at $88.11, which is a spike of $1.11 from the previous closing price.
Old Dominion Freight Line, Inc. (NASDAQ: ODFL) currently has a market cap of 7.26B.
Old Dominion Freight Line, Inc. (NASDAQ: ODFL) Average Daily Trading Volume
The stock’s average daily volume is 639,081 shares out of a total float 65,128,000 and some 22,208 shares crossed the trading desk yesterday, 68 percent below normal. lower than normal. Look for trading volume to pick up in the coming days as momentum traders often use upticks 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 retain teams of analysts that investigate thousands of stocks, so it is good validation to see them taking a postion in a stock you are considering.
Old Dominion Freight Line, Inc. (NASDAQ: ODFL) 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 identifying trends, moving averages allow investors to make those trends work in their favor and increase the number of winning trades.
With that in mind, Old Dominion Freight Line, Inc. (NASDAQ: ODFL) now has a 50-day MA of $87.62 and 200-day MA of $73.56. It has traded in a 52-week range between $48.92 – 91.690 and today’s last price is 3.91%% lower than the 52 week high of $91.69.
Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors seek companies that have been successful at growing their earnings at least 25% or more for 3 consecutive years.
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