American Express Co. (NYSE: AXP) shares were down on Friday January 20 on lower trade volume than normal after a number of analysts weighed in on the investing value of the stock, raising the price target of stock.
Meanwhile, U.S. stocks rose Friday morning as Wall Street closely awaited Donald Trump’s inauguration as the nation’s 45th president.
The Dow Jones Industrial Average DJIA, +0.41% rose 95 points, or 0.5%, to 19,826, while the S&P 500 index SPX, +0.41% climbed 11 points, or 0.5%, to 2,275 and the Nasdaq Composite COMP, +0.37% added 28 points, or 0.6%, to 5,571.
American Express Co. (NYSE: AXP) had its price target increased by equities researchers at Goldman Sachs Group Inc. from $0.00 to $80.00. With a rating of Positive on the shares, American Express Co. has a 52-week high of $78.00. The one-year price target of $78.92 is above the opening price of $75.99, causing a fair amount of other analysts to comment on the company in recent days.
Shares of American Express Co. (NYSE: AXP) opened at $75.99 yesterday trading between $75.39 and $76.70, and last traded at $76.15, which is a drop of $0.55 compared to the previous closing price.
American Express Co. (NYSE: AXP) now has a market cap of 69.69B.
American Express Co. (NYSE: AXP) Average Daily Trading Volume
The stock’s average daily volume is 4,824,680 shares out of a total float 761,382,000 and some 2,399,478 shares crossed the trading desk yesterday, 117 percent below the average. 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.
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 commonly 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 that research thousands of stocks, so it is good corroboration to see them buying a stock you’re researching.
American Express Co. (NYSE: AXP) 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 American Express Co. (NYSE: AXP) have ranged from $50.27 – 78.000, and the stock now has a 50-day MA of $74.91 and 200-day MA of $67.60. Today’s last price is 2.38%% lower than the 52 week high of $78.00.
Earnings growth is a critical factor to consider when investing in stocks and investors look for companies that have been successful at growing their earnings by at least 25% over a 3 year period.
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