Edison International (NYSE: EIX) 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, 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.
Edison International (NYSE: EIX) had its price target increased by equities researchers at Barclays PLC from $0.00 to $77.00. With a rating of on the shares, the company has a 52-week high of $78.72. A number of other analysts have commented on the stock recently, and the company has earned a consensus one-year price target of $77.35, higher than the opening price of $71.87, a difference of 10.71 percent.
Yesterday Edison International (NYSE: EIX) shares last traded at $72.20, which represents a spike of $0.48 over the previous closing price. Opening at $71.87, they fluctuated from $71.87 and $72.30 throughout the day.
Edison International (NYSE: EIX) now has a market cap of 23.52B.
Edison International (NYSE: EIX) Average Daily Trading Volume
194,005 shares crossed the trading desk yesterday, 34 percent below normal, out of a total float 325,244,000. lower than normal. Look for trading volume to pick up in the coming days as investors often use upticks in trading volume to identify heavy volume accumulation or distribution by institutional investors.
However, a single day of heavy buy side trading is not enough to assert a trend. As such, market traders will continue to watch for institutional sponsorship as a signal that financial institutions are moving forward.
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 investigate thousands of stocks, so it is good validation to see them buying a stock you’re researching.
Edison International (NYSE: EIX) 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, Edison International (NYSE: EIX) now has a 50-day MA of $71.17 and 200-day MA of $72.71. It has traded in a 52-week range between $58.45 – 78.72 and today’s last price is 8.28%% lower than the 52 week high of $78.72.
Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors seek companies that have grown their earnings at least 25% or more for 3 consecutive years.
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