AmerisourceBergen Corp. (NYSE: ABC) shares rose in value on Monday January 23 on lighter 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 AmerisourceBergen Corp. (NYSE: ABC) from Buy to Strong-Buy today. The company currently has a rating of Strong-Buy on the shares. The one-year price target of $87.63 is higher than the opening price of $83.72, that has caused a number of other analysts to issue statements on the stock in recent days. Looking back over the last 52 weeks, AmerisourceBergen Corp. stock has a high of $92.48. Stock prices often move to the upside on recommendations and new price targets of professional brokerage firms.
Shares of AmerisourceBergen Corp. (NYSE: ABC) opened at $83.72 yesterday trading between $83.31 and $84.16, and last traded at $84.12, an increase of $0.37 compared to the previous closing price.
AmerisourceBergen Corp. (NYSE: ABC) now has a market cap of 18.51B.
AmerisourceBergen Corp. (NYSE: ABC) Average Daily Trading Volume
166,948 shares traded hands yesterday, 37 percent below normal, out of a total float 162,039,000. 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.
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.
These professional investors have substantial teams of analysts researching thousands of stocks. Thus, watching their interests is a good way to ensure you are buying the right stocks.
AmerisourceBergen Corp. (NYSE: ABC) 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, AmerisourceBergen Corp. (NYSE: ABC) now has a 50-day MA of $80.67 and 200-day MA of $82.15. It has traded in a 52-week range between $68.38 – 92.48 and today’s last price is 9.04%% lower than the 52 week high of $92.48.
Earnings growth is a critical factor to research when buying stocks and investors seek companies that have increased their earnings at least 25% or more over the past 3 years.
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