Check Point Software Technologies Ltd. (NASDAQ: CHKP) shares rose on Friday January 20 on lower trade volume than normal after a number of analysts weighed in on the investing value of the stock, boosting 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.
Check Point Software Technologies Ltd. (NASDAQ: CHKP) had its price target increased by equities researchers at RBC Capital Markets from $96.00 to $98.00. With a rating of Outperform on the stock, the company has a 52-week high of $97.92. The one-year price target of $93.90 is lower than the opening price of $96.99, resulting a fair amount of other analysts to comment on the company recently.
Shares of Check Point Software Technologies Ltd. (NASDAQ: CHKP) opened at $96.99 yesterday trading between $96.30 and $97.77, and last traded at $97.56, which represents a jump of $1.22 compared to the previous closing price.
Check Point Software Technologies Ltd. (NASDAQ: CHKP) now has a market cap of 16.50B.
Check Point Software Technologies Ltd. (NASDAQ: CHKP) Average Daily Trading Volume
484,696 shares traded hands yesterday, 76 percent below the norm, out of a total float 124,357,000. lower than normal. Look for trading volume to pick up in the coming days as investors often use swings 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.
These instituitional investors have teams of analysts researching thousands of stocks, so it is good confirmation to see them buying a stock you are considering.
Check Point Software Technologies Ltd. (NASDAQ: CHKP) 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, Check Point Software Technologies Ltd. (NASDAQ: CHKP) now has a 50-day MA of $86.07 and 200-day MA of $80.55. It has traded in a 52-week range between $73.28 – 97.92 and today’s last price is 0.37%% lower than the 52 week high of $97.92.
Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors seek companies that have been successful at growing their earnings by at least 25% over the past 3 years.
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