PACCAR Inc. (NASDAQ: PCAR) shares rose in value on Friday, January 13 on lighter 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 RBC Capital Markets upgraded shares of PACCAR Inc. (NASDAQ: PCAR) from Sector Perform to Outperform today. RBC Capital Markets currently has a rating of Outperform on the stock. The one-year price target of $63.10 is lower than the opening price of $67.07, causing a number of other analysts to report on the stock in recent days. Looking back over the last 52 weeks, PACCAR Inc. stock has a high of $68.50. Stock prices sometimes get a bounce to the upside when analysts upgrade a stock.
Shares of PACCAR Inc. (NASDAQ: PCAR) opened at $67.07 yesterday trading between $66.78 and $67.65, and last traded at $67.52, an increase of $1.19 compared to the previous closing price.
PACCAR Inc. (NASDAQ: PCAR) now has a market cap of 23.67B.
PACCAR Inc. (NASDAQ: PCAR) Average Daily Trading Volume
The stock’s average daily volume is 2,055,700 shares out of a total float 343,154,000 and some 1,512,772 shares traded hands yesterday, 118 percent below the norm. 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.
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 just refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors have teams of analysts that research thousands of stocks, so it is good corroboration to see them taking a postion in a stock you’re considering.
PACCAR Inc. (NASDAQ: PCAR) 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, PACCAR Inc. (NASDAQ: PCAR) now has a 50-day MA of $64.46 and 200-day MA of $58.60. It has traded in a 52-week range between $43.46 – 68.50 and today’s last price is 1.43%% lower than the 52 week high of $68.50.
Earnings growth is an important factor to look at when investing in stocks and investors identify companies that have grown their earnings at least 25% or more over 3 consecutive years.
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