Timken Co. (NYSE: TKR) shares fell back in value on Friday January 20 on lower 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 Zacks Investment Research upgraded shares of Timken Co. (NYSE: TKR) from Hold to Buy today. With a rating of Buy on the stock, Timken Co. has a 52-week high of $44.55. As a means of comparison, a number of other analysts have spoken on the stock in recent days, and the company has secured a consensus one-year price target of $41.00, less than the opening price of $43.45. Stock prices sometimes get a boost to the upside when analysts upgrade a stock.
Shares of Timken Co. (NYSE: TKR) opened at $43.45 yesterday trading between $43.12 and $43.65, and last traded at $43.30, a decrease of $0.05 over the previous closing price.
Timken Co. (NYSE: TKR) now has a market cap of 3.37B.
Timken Co. (NYSE: TKR) Average Daily Trading Volume
The stock’s average daily volume is 754,466 shares out of a total float 73,752,000 and some 53,637 shares traded hands yesterday, 9 percent below the norm. 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.
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 just refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors have teams of analysts that investigate thousands of stocks. So watching their interests is a good way to ensure you are buying the right stocks.
Timken Co. (NYSE: TKR) 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 identifying trends, moving averages allow investors to make those trends work in their favor and increase the number of winning trades.
With that in mind, Timken Co. (NYSE: TKR) now has a 50-day MA of $40.89 and 200-day MA of $35.71. It has traded in a 52-week range between $23.57 – 44.55 and today’s last price is 2.81%% lower than the 52 week high of $44.55.
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 a 3 year period.
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