CNH Industrial NV (NASDAQ: CNHI) shares rose in value on Friday, January 13 on heavier trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
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.
Analysts at Bank of America Corporation upgraded shares of CNH Industrial NV (NASDAQ: CNHI) from Underperform to Neutral today. With a rating of Neutral on the shares, the company has a 52-week high of $9.25. The one-year price target of $7.60 is a decrease compared to the opening price of $9.07, that has caused a fair amount of other analysts to issue statements on the company recently. Share prices often move to the upside on recommendations and new price targets of professional brokerage firms.
Shares of CNH Industrial NV (NASDAQ: CNHI) opened at $9.07 yesterday trading between $9.02 and $9.10, and last traded at $9.07, which represents a spike of $0.18 from the previous closing price.
CNH Industrial NV (NASDAQ: CNHI) now has a market cap of 12.34B.
CNH Industrial NV (NASDAQ: CNHI) Average Daily Trading Volume
2,091,531 shares crossed the trading desk yesterday, 116 percent above the norm, out of a total float 1,340,556,000. higher than normal. Significant increases in trading volume and price appreciation together could signal heavy volume accumulation 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 just 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 researching thousands of stocks. So watching their interests is a good way to ensure you are buying the right stocks.
CNH Industrial NV (NASDAQ: CNHI) 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, CNH Industrial NV (NASDAQ: CNHI) now has a 50-day MA of $8.73 and 200-day MA of $7.66. It has traded in a 52-week range between $5.67 – 9.25 and today’s last price is 1.95%% lower than the 52 week high of $9.25.
Earnings growth is an important factor to consider when buying stocks and investors seek companies that have increased their earnings at least 25% or more for a 3 year period.
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