Procter & Gamble Company (NYSE: PG) 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 Zacks Investment Research upgraded shares of Procter & Gamble Company (NYSE: PG) from Sell to Hold today. With a rating of Hold on the stock, the company has a 52-week high of $90.33. The one-year price target of $89.59 is above the opening price of $84.80, causing a number of other analysts to report on the stock recently. Stock prices sometimes get a spike to the upside when analysts upgrade a stock.
Shares of Procter & Gamble Company (NYSE: PG) opened at $84.80 yesterday and traded in a range between, $84.72 and $85.30, and last traded at $84.79, which represents a jump of $0.25 over the previous closing price.
Procter & Gamble Company (NYSE: PG) now has a market cap of 226.90B.
Procter & Gamble Company (NYSE: PG) Average Daily Trading Volume
1,969,150 shares traded hands yesterday, 43 percent below the norm, out of a total float 2,673,610,000. lower than normal. Look for trading volume to pick up in the coming days as momentum traders often use upticks in trading volume to identify heavy volume accumulation or distribution by institutional investors.
While increased trading for one day 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 instituitional investors have substantial teams of analysts researching thousands of stocks. So watching their interests is a good way to make sure you are buying the right stocks.
Procter & Gamble Company (NYSE: PG) 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, Procter & Gamble Company (NYSE: PG) now has a 50-day MA of $84.10 and 200-day MA of $85.93. It has traded in a 52-week range between $74.46 – 90.33 and today’s last price is 6.13%% lower than the 52 week high of $90.33.
Earnings growth is a crucial factor to consider when buying stocks and investors watch for companies that have been successful at growing their earnings at least 25% or more over a 3 year period.
DISCLOSURE: The views and opinions expressed in this article do not represent the views of the website. Readers should not consider statements made by the author as formal recommendations and should consult their financial adviser before making any investment decisions. To read our full disclosure, please see our terms and conditions page.