New Oriental Education & Technology Group, Inc. (NYSE: EDU) shares rose in value on Wednesday January 18 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, in early trade today, the S&P 500 SPX, +0.00% was off 2 points, or 0.1%, at 2,265, shortly after open. The Nasdaq Composite COMP, +0.20% was flat at 5,537. The Dow Jones Industrial Average DJIA, -0.20% slipped 54 points or 0.3%, to 19,770.
Analysts at J P Morgan Chase & Co upgraded shares of New Oriental Education & Technology Group, Inc. (NYSE: EDU) from Neutral to Overweight today. With a rating of Overweight on the shares, the company has a 52-week high of $53.38. As a means of comparison, a number of other analysts have commented on the stock in recent days, and the company has earned a consensus one-year price target of $58.65, above the opening price of $51.59. Share prices sometimes get a bounce to the upside when analysts upgrade a stock.
Yesterday New Oriental Education & Technology Group, Inc. (NYSE: EDU) shares last traded at $50.79, which is a jump of $0.68 compared to the previous closing price. Opening at $51.59, they varied from $50.52 and $51.69 throughout the day.
New Oriental Education & Technology Group, Inc. (NYSE: EDU) now has a market cap of 8.00B.
New Oriental Education & Technology Group, Inc. (NYSE: EDU) Average Daily Trading Volume
The stock’s average daily volume is 1,437,160 shares out of a total float 134,513,000 and some 510,176 shares traded hands yesterday, 95 percent below the average. lower than normal. Look for trading volume to pick up in the coming days as swing traders often use upticks 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 is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these have substantial teams of analysts researching thousands of stocks. So watching their interests is a good way to ensure you are buying the right stocks.
New Oriental Education & Technology Group, Inc. (NYSE: EDU) 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 New Oriental Education & Technology Group, Inc. (NYSE: EDU) have ranged from $28.17 – 53.38, and the stock now has a 50-day MA of $44.95 and 200-day MA of $45.42. Today’s last price is 4.85%% below the 52 week high of $53.38.
Earnings growth is a crucial factor to look at when investing in stocks and investors watch for companies that have grown their earnings at least 25% or more over a 3 year period.
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