American Express Co. (NYSE: AXP) shares rose in value on Monday January 23 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 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.
Analysts at Vetr Inc. upgraded shares of American Express Co. (NYSE: AXP) from Buy to Strong-Buy today. With a rating of Strong-Buy on the stock, American Express Co. has a 52-week high of $78.00. As a means of comparison, a number of other analysts have commented on the company recently, and the company has earned a consensus one-year price target of $80.16, higher than the opening price of $75.92, a difference of 10.50 percent. Share prices sometimes get a boost to the upside when analysts upgrade a stock.
Yesterday American Express Co. (NYSE: AXP) shares last traded at $76.35, an increase of $0.15 from the previous closing price. Opening at $75.92, they varied from $75.84 and $76.48 throughout the day.
American Express Co. (NYSE: AXP) currently has a market cap of 69.02B.
American Express Co. (NYSE: AXP) Average Daily Trading Volume
The stock’s average daily volume is 4,547,770 shares out of a total float 752,019,000 and some 701,191 shares crossed the trading desk yesterday, 91 percent lower than the average. lower than normal. Look for trading volume to pick up in the coming days as investors often use swings 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.
Professional investors such as these have substantial teams of analysts that research thousands of stocks, so it is good validation to see them taking a postion in a stock you’re considering.
American Express Co. (NYSE: AXP) 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.
Trades for American Express Co. (NYSE: AXP) have ranged from $50.27 – 78.00, and the stock now has a 50-day MA of $75.02 and 200-day MA of $67.66. Today’s last price is 2.12%% under the 52 week high of $78.00.
Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors identify companies that have increased their earnings by at least 25% for 3 consecutive years.
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