Paypal Holdings Inc. (NASDAQ: PYPL) 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 and reiterated thier respective ratings.
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.
Cantor Fitzgerald analysts reiterated its Positive rating on Paypal Holdings Inc. (NASDAQ: PYPL) in a note to investors, making it one of the more closely watched stocks on Wall Street. With a rating of Positive on the stock, Paypal Holdings Inc. has a 52-week high of $44.52. A number of other analysts have spoken on the stock in recent days, and Paypal Holdings Inc. has secured a consensus one-year price target of $46.60, higher than the opening price of $41.86. Typically, after analysts publish a “reiterated rating” report on a stock, they will later issue sporadic updates, such as a price target change.
Yesterday Paypal Holdings Inc. (NASDAQ: PYPL) shares last traded at $41.81, a jump of $0.12 over the previous closing price. Opening at $41.86, they varied from $41.74 and $42.11 throughout the day.
Paypal Holdings Inc. (NASDAQ: PYPL) now has a market cap of 49.34B.
Paypal Holdings Inc. (NASDAQ: PYPL) Average Daily Trading Volume
1,784,393 shares crossed the trading desk yesterday, 32 percent below normal, out of a total float 1,110,380,000. lower than normal. Look for trading volume to pick up in the coming days as momentum 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 instituitional investors have substantial teams of analysts researching thousands of stocks, so it is good corroboration to see them taking a postion in a stock you’re researching.
Paypal Holdings Inc. (NASDAQ: PYPL) 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 Paypal Holdings Inc. (NASDAQ: PYPL) have ranged from $31.35 – 44.52, and the stock now has a 50-day MA of $40.18 and 200-day MA of $39.51. Today’s last price is 6.09%% under the 52 week high of $44.52.
Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors identify companies that have raised their earnings by at least 25% over a 3 year period.
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