Abbott Laboratories (NYSE: ABT) shares rose on Friday, January 13 on heavier trade volume than normal after a number of analysts weighed in on the investing value of the stock, increasing the price target of stock.
Meanwhile, The Dow Jones Industrial Average DJIA, -0.03% slipped 5.27 points to close 19,885.73, moving in a roughly 100-point range all session. For the week, the blue-chip index is off 0.4%.
U.S. financial markets will be closed Monday for Martin Luther King Jr. Day.
The S&P 500 index SPX, +0.18% added 4.20 points, or 0.2%, to end at 2,274.64 for a weekly loss of 0.1%, and the Nasdaq Composite Index COMP, +0.48% climbed 26.63 points, or 0.5%, to finish at 5,574.12, its sixth all-time closing high in seven trading sessions.
Abbott Laboratories (NYSE: ABT) had its price target boosted by equities researchers at Jefferies Group from $0.00 to $47.00. With a rating of Buy on the stock, the company has a 52-week high of $45.79. The one-year price target of $46.62 is above the opening price of $40.75, that has caused a fair amount of other analysts to comment on the stock recently.
Shares of Abbott Laboratories (NYSE: ABT) opened at $40.75 yesterday and traded in a range between, $40.69 and $41.36, and last traded at $40.93, which represents an increase of $0.21 from the previous closing price.
Abbott Laboratories (NYSE: ABT) now has a market cap of 60.26B.
Abbott Laboratories (NYSE: ABT) Average Daily Trading Volume
The stock’s average daily volume is 9,144,670 shares out of a total float 1,466,390,000 and some 9,533,780 shares traded hands yesterday, 61 percent above the average. higher than normal. Significant increases in trading volume and price appreciation together could signal heavy volume accumulation by institutional investors.
While increased trading for short periods will not mean much will not mean much, however, 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 have substantial teams of analysts that research thousands of stocks, so it is good validation to see them taking a postion in a stock you are considering.
Abbott Laboratories (NYSE: ABT) 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 Abbott Laboratories (NYSE: ABT) have ranged from $36.00 – 45.79, and the stock now has a 50-day MA of $39.02 and 200-day MA of $41.15. Today’s last price is 10.61%% lower than the 52 week high of $45.79.
Earnings growth is a critical factor to consider when buying stocks and investors identify companies that have increased their earnings by at least 25% over 3 consecutive years.
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