Varian Medical Systems Inc. (NYSE: VAR) 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.
Analysts at RBC Capital Markets reiterated a Hold rating on shares of Varian Medical Systems Inc. (NYSE: VAR) in a reserach note to investors, making it one of the more actively watched stocks on Wall Street. With a rating of Hold on the shares, Varian Medical Systems Inc. has a 52-week high of $106.70. The one-year price target of $92.82 is above the opening price of $90.00, that has caused a number of other analysts to report on the stock recently. Share prices often shift to the upside on recommendations and new price targets of professional analysts.
Shares of Varian Medical Systems Inc. (NYSE: VAR) opened at $90.00 yesterday trading between $89.75 and $90.43, and last traded at $90.01, which is an increase of $0.09 from the previous closing price.
Varian Medical Systems Inc. (NYSE: VAR) now has a market cap of 8.41B.
Varian Medical Systems Inc. (NYSE: VAR) Average Daily Trading Volume
The stock’s average daily volume is 801,547 shares out of a total float 93,157,000 and some 84,941 shares traded hands yesterday, 71 percent below normal. 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.
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 simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors retain substantial teams of analysts researching thousands of stocks. Thus, watching their interests is a good way to make sure you are buying the right stocks.
Varian Medical Systems Inc. (NYSE: VAR) 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, Varian Medical Systems Inc. (NYSE: VAR) now has a 50-day MA of $90.35 and 200-day MA of $92.44. It has traded in a 52-week range between $73.18 – 106.70 and today’s last price is 15.64%% lower than the 52 week high of $106.70.
Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors look for companies that have been successful at growing their earnings at least 25% or more over a 3 year period.
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