Align Technology Inc. (NASDAQ: ALGN) shares rose on Monday January 23 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 flipped between small gains and losses in early trade on Monday.
The Dow Jones Industrial Average DJIA, -0.14% was off by 13 points, or less than 0.1%, at 19,815, with McDonald’s Corp MCD, -0.99% and General Electric CoGE, -0.95% leading the losses, down more than 1%.
The S&P 500 SPX, -0.18% slipped 2 point to 2,270, with five of the main sectors trading lower. The Nasdaq Composite COMP, -0.09% gained 4 points to 5,558.
Align Technology Inc. (NASDAQ: ALGN) had its price target raised by equities researchers at Jefferies from $0.00 to $110.00. With a rating of on the shares, Align Technology Inc. has a 52-week high of $102.10. The one-year price target of $104.67 is above the opening price of $91.58, that has caused a number of other analysts to report on the stock recently.
Yesterday Align Technology Inc. (NASDAQ: ALGN) shares last traded at $92.19, which is a jump of $0.49 from the previous closing price. Opening at $91.58, they ranged from $91.50 and $92.43 throughout the day.
Align Technology Inc. (NASDAQ: ALGN) now has a market cap of 7.35B.
Align Technology Inc. (NASDAQ: ALGN) Average Daily Trading Volume
59,977 shares traded hands yesterday, 76 percent lower than the norm, out of a total float 73,585,000. lower than normal. Look for trading volume to pick up in the coming days as swing traders often use swings 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.
Professional investors such as these have teams of analysts researching thousands of stocks, so it is good corroboration to see them buying a stock you’re researching.
Align Technology Inc. (NASDAQ: ALGN) 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, Align Technology Inc. (NASDAQ: ALGN) now has a 50-day MA of $96.79 and 200-day MA of $92.01. It has traded in a 52-week range between $57.51 – 102.10 and today’s last price is 9.71%% lower than the 52 week high of $102.10.
Earnings growth is a crucial factor to consider when investing in stocks and investors seek companies that have raised their earnings at least 25% or more over the past 3 years.
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