United Rentals Inc. (NYSE: URI) 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, increasing 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.
United Rentals Inc. (NYSE: URI) had its price target raised by equities researchers at Jefferies Group from $0.00 to $130.00. Jefferies Group currently has a rating of on the shares. A number of other analysts have commented on the stock recently, and the company has secured a consensus one-year price target of $105.13, a decrease compared to the opening price of $110.98. United Rentals Inc. stock has a 52-week high of $112.50.
Yesterday United Rentals Inc. (NYSE: URI) shares last traded at $111.22, a jump of $0.77 over the previous closing price. Opening at $110.98, they ranged from $110.98 and $111.94 throughout the day.
United Rentals Inc. (NYSE: URI) now has a market cap of 9.37B.
United Rentals Inc. (NYSE: URI) Average Daily Trading Volume
191,544 shares traded hands yesterday, 33 percent below normal, out of a total float 83,840,000. 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.
While increased trading for short periods will not mean much will not mean much, conversely, a trend of heavy trading volume on the buy side over a period of days or weeks sends a positive signal to market traders that institutions may be moving in, so institutional sponsorship is very important.
Institutional sponsorship commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these retain substantial teams of analysts researching thousands of stocks, so it is good corroboration to see them taking a postion in a stock you are researching.
United Rentals Inc. (NYSE: URI) 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, United Rentals Inc. (NYSE: URI) now has a 50-day MA of $107.50 and 200-day MA of $86.06. It has traded in a 52-week range between $41.90 – 112.50 and today’s last price is 1.14%% lower than the 52 week high of $112.50.
Earnings growth is an important factor to look at when buying stocks and investors look for companies that have increased their earnings by at least 25% for 3 consecutive years.
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