CVS Health Corporation (NYSE: CVS) 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 CVS Health Corporation (NYSE: CVS) from Hold to Buy today. The company currently has a rating of Buy on the stock. As a means of comparison, a number of other analysts have issued reports on the stock recently, and the company has secured a consensus one-year price target of $87.95, above the opening price of $81.50. CVS Health Corporation stock has a 52-week high of $106.67. Share prices often shift to the upside on recommendations and new price targets of professional analysts.
Shares of CVS Health Corporation (NYSE: CVS) opened at $81.50 yesterday and traded in a range between, $81.43 and $81.93, and last traded at $81.63, a spike of $0.07 from the previous closing price.
CVS Health Corporation (NYSE: CVS) currently has a market cap of 87.05B.
CVS Health Corporation (NYSE: CVS) Average Daily Trading Volume
634,228 shares crossed the trading desk yesterday, 40 percent lower than the norm, out of a total float 1,064,850,000. 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.
As with all potential breakouts, investors look for volume to be at least 40%-50% higher than normal on the breakout to show that fund managers and other professional investors are jumping in.
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 that investigate thousands of stocks, so it is good corroboration to see them buying a stock you are researching.
CVS Health Corporation (NYSE: CVS) 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, CVS Health Corporation (NYSE: CVS) now has a 50-day MA of $80.36 and 200-day MA of $87.13. It has traded in a 52-week range between $69.30 – 106.67 and today’s last price is 23.47%% lower than the 52 week high of $106.67.
Earnings growth is an important factor to research when buying stocks and investors seek companies that have increased their earnings by at least 25% for a 3 year period.
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