Johnson & Johnson (NYSE: JNJ) 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.
Johnson & Johnson (NYSE: JNJ) had its price target increased by equities researchers at Jefferies Group from $0.00 to $120.00. Jefferies Group currently has a rating of on the shares. As a means of comparison, a number of other analysts have issued reports on the company recently, and Johnson & Johnson has secured a consensus one-year price target of $125.05, above the opening price of $114.49. Johnson & Johnson stock has a 52-week high of $126.07.
Yesterday Johnson & Johnson (NYSE: JNJ) shares last traded at $114.89, which represents a jump of $0.69 from the previous closing price. Opening at $114.49, they ranged from $114.44 and $115.03 throughout the day.
Johnson & Johnson (NYSE: JNJ) now has a market cap of 312.56B.
Johnson & Johnson (NYSE: JNJ) Average Daily Trading Volume
The stock’s average daily volume is 7,081,090 shares out of a total float 2,719,389,000 and some 1,804,077 shares traded hands yesterday, 36 percent below normal. 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 simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Professional investors such as these have substantial teams of analysts researching thousands of stocks, so it is good corroboration to see them buying a stock you are researching.
Johnson & Johnson (NYSE: JNJ) 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 spotting trends, moving averages allow investors to make those trends work in their favor and increase the number of winning trades.
With that in mind, Johnson & Johnson (NYSE: JNJ) now has a 50-day MA of $114.68 and 200-day MA of $118.15. It has traded in a 52-week range between $95.95 – 126.07 and today’s last price is 8.87%% lower than the 52 week high of $126.07.
Earnings growth is a crucial factor to look at when buying stocks and investors watch for companies that have been successful at growing their earnings at least 25% or more over 3 consecutive years.
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