Quanta Services Inc. (NYSE: PWR) shares rose on Monday January 23 on lighter trade volume than normal after a number of analysts weighed in on the investing value of the stock, raising the price target of stock.
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.
Quanta Services Inc. (NYSE: PWR) had its price target raised by equities researchers at Citigroup from $0.00 to $37.00. With a rating of on the stock, the company has a 52-week high of $36.85. The one-year price target of $35.38 is above the opening price of $34.66, causing a number of other analysts to comment on the stock recently.
Yesterday Quanta Services Inc. (NYSE: PWR) shares last traded at $34.71, which is an increase of $0.05 compared to the previous closing price. Opening at $34.66, they varied from $34.56 and $34.89 throughout the day.
Quanta Services Inc. (NYSE: PWR) currently has a market cap of 5.25B.
Quanta Services Inc. (NYSE: PWR) Average Daily Trading Volume
The stock’s average daily volume is 2,141,700 shares out of a total float 143,162,000 and some 54,739 shares traded hands yesterday, 4 percent lower than normal. 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.
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 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, so it is good validation to see them taking a postion in a stock you’re researching.
Quanta Services Inc. (NYSE: PWR) 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 Quanta Services Inc. (NYSE: PWR) have ranged from $16.77 – 36.85, and the stock now has a 50-day MA of $34.78 and 200-day MA of $29.03. Today’s last price is 5.81%% under the 52 week high of $36.85.
Earnings growth is a critical factor to research when investing in stocks and investors seek companies that have increased their earnings at least 25% or more over a 3 year period.
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