Walgreens Boots Alliance Inc. (NASDAQ: WBA) 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.
Walgreens Boots Alliance Inc. (NASDAQ: WBA) had its Buy rating reiterated by equities researchers at Jefferies in a research note to investors. Jefferies currently has a rating of Buy on the stock. The one-year price target of $94.42 is higher than the opening price of $81.58, causing a number of other analysts to report on the stock in recent days. Looking back over the last 52 weeks, Walgreens Boots Alliance Inc. stock has a high of $88.00. Usually, after analysts publish a “reiterated rating” report on a stock, they will subsequently issue other revisions, such as a price target change.
Yesterday Walgreens Boots Alliance Inc. (NASDAQ: WBA) shares last traded at $82.12, a spike of $0.40 from the previous closing price. Opening at $81.58, they fluctuated from $81.40 and $82.49 throughout the day.
Walgreens Boots Alliance Inc. (NASDAQ: WBA) currently has a market cap of 88.64B.
Walgreens Boots Alliance Inc. (NASDAQ: WBA) Average Daily Trading Volume
554,350 shares traded hands yesterday, 112 percent below the norm, out of a total float 933,214,000. lower than normal. Look for trading volume to pick up in the coming days as momentum traders often use swings in trading volume to identify heavy volume accumulation or distribution by institutional investors.
While increased trading for one day will not mean much, conversely, 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 just refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors have teams of analysts researching thousands of stocks, so it is good confirmation to see them buying a stock you’re considering.
Walgreens Boots Alliance Inc. (NASDAQ: WBA) 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 identifying trends, moving averages allow investors to make those trends work in their favor and increase the number of winning trades.
With that in mind, Walgreens Boots Alliance Inc. (NASDAQ: WBA) now has a 50-day MA of $84.44 and 200-day MA of $82.22. It has traded in a 52-week range between $71.50 – 88.00 and today’s last price is 6.68%% lower than the 52 week high of $88.00.
Earnings growth is an important factor to look at when buying stocks and investors identify companies that have been successful at growing their earnings at least 25% or more over the past 3 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.