PayPal Holdings, Inc. (NASDAQ: PYPL) 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, 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 upgraded shares of PayPal Holdings, Inc. (NASDAQ: PYPL) from Hold to Buy today. Zacks Investment Research currently has a rating of Buy on the shares. A number of other analysts have issued reports on the stock in recent days, and PayPal Holdings, Inc. has earned a consensus one-year price target of $46.55, above the opening price of $41.65, a difference of 11.15 percent. PayPal Holdings, Inc. stock has a 52-week high of $44.52. Stock prices sometimes get a boost to the upside when analysts upgrade a stock.
Shares of PayPal Holdings, Inc. (NASDAQ: PYPL) opened at $41.65 yesterday trading between $41.57 and $41.84, and last traded at $41.76, which represents an increase of $0.20 from the previous closing price.
PayPal Holdings, Inc. (NASDAQ: PYPL) currently has a market cap of 49.27B.
PayPal Holdings, Inc. (NASDAQ: PYPL) Average Daily Trading Volume
605,160 shares crossed the trading desk yesterday, 0 percent below the average, out of a total float 1,110,391,000. 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.
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 simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Professional investors such as these have substantial teams of analysts researching thousands of stocks. Thus, watching their interests is a good way to ensure you are buying the right stocks.
PayPal Holdings, Inc. (NASDAQ: PYPL) 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, PayPal Holdings, Inc. (NASDAQ: PYPL) now has a 50-day MA of $39.77 and 200-day MA of $39.15. It has traded in a 52-week range between $30.52 – 44.520 and today’s last price is 6.21%% lower than the 52 week high of $44.52.
Earnings growth is a crucial factor to look at when investing in stocks and investors identify companies that have grown their earnings by at least 25% over a 3 year period.
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