Essex Property Trust Inc. (NYSE: ESS) shares rose in value on Monday January 23 on lower 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 Barclays PLC upgraded shares of Essex Property Trust Inc. (NYSE: ESS) from Equal Weight to Overweight today. With a rating of Overweight on the stock, Essex Property Trust Inc. has a 52-week high of $237.50. A number of other analysts have spoken on the company recently, and Essex Property Trust Inc. has secured a consensus one-year price target of $238.56, above the opening price of $229.68. Stock prices sometimes get a bounce to the upside when analysts upgrade a stock.
Yesterday Essex Property Trust Inc. (NYSE: ESS) shares last traded at $230.11, which represents a spike of $1.57 compared to the previous closing price. Opening at $229.68, they ranged from $228.67 and $230.78 throughout the day.
Essex Property Trust Inc. (NYSE: ESS) currently has a market cap of 15.08B.
Essex Property Trust Inc. (NYSE: ESS) Average Daily Trading Volume
23,443 shares crossed the trading desk yesterday, 73 percent below the average, out of a total float 65,073,000. lower than normal. Look for trading volume to pick up in the coming days as swing traders 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, however, 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 is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors retain teams of analysts researching thousands of stocks. So watching their interests is a good way to make sure you are buying the right stocks.
Essex Property Trust Inc. (NYSE: ESS) 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, Essex Property Trust Inc. (NYSE: ESS) now has a 50-day MA of $225.86 and 200-day MA of $222.53. It has traded in a 52-week range between $191.25 – 237.50 and today’s last price is 3.11%% lower than the 52 week high of $237.50.
Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors identify companies that have been successful at growing their earnings at least 25% or more over 3 consecutive years.
DISCLOSURE: The views and opinions expressed in this article do not represent the views of the website. Readers should not consider statements made by the author as formal recommendations and should consult their financial adviser before making any investment decisions. To read our full disclosure, please see our terms and conditions page.