Rockwell Automation Inc. (ROK) Shares Tick Up after Upgrade at Buckingham Research

Rockwell Automation Inc. (NYSE: ROK) shares rose in value on Friday January 20 on slower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.

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.

Analysts at Buckingham Research upgraded shares of Rockwell Automation Inc. (NYSE: ROK) from Neutral to Buy today. With a rating of Buy on the stock, the company has a 52-week high of $142.54. The one-year price target of $129.95 is a decrease compared to the opening price of $140.99, resulting a number of other analysts to report on the stock in recent days. Usually, after analysts assign an upgrade report on a stock, they will subsequently issue periodic revisions, usually followed by a price target change.

Shares of Rockwell Automation Inc. (NYSE: ROK) opened at $140.99 yesterday and traded in a range between, $139.72 and $141.45, and last traded at $140.76, which represents an increase of $0.76 from the previous closing price.

Rockwell Automation Inc. (NYSE: ROK) now has a market cap of 18.05B.

Rockwell Automation Inc. (NYSE: ROK) Average Daily Trading Volume

The stock’s average daily volume is 1,033,760 shares out of a total float 127,473,000 and some 341,926 shares crossed the trading desk yesterday, 109 percent below the norm. 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 is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.

Institutional investors such as these retain teams of analysts that research thousands of stocks. Thus, watching their interests is a good way to make sure you are buying the right stocks.

Rockwell Automation Inc. (NYSE: ROK) 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 traders to make those trends work in their favor and increase the number of winning trades.

Trades for Rockwell Automation Inc. (NYSE: ROK) have ranged from $89.68 – 142.54, and the stock now has a 50-day MA of $137.46 and 200-day MA of $123.84. Today’s last price is 1.25%% lower than the 52 week high of $142.54.

Earnings growth is a critical factor to look at when investing in stocks and investors seek companies that have grown their earnings by at least 25% for a 3 year period.

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