Western Digital Corp. (NASDAQ: WDC) shares fell 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.
Cowen and Company analysts reiterated its Outperform rating on Western Digital Corp. (NASDAQ: WDC) in a note to investors, making it one of the more closely watched stocks on Wall Street. The company currently has a rating of Outperform on the shares. A number of other analysts have commented on the stock in recent days, and Western Digital Corp. has earned a consensus one-year price target of $79.59, above the opening price of $72.95. Western Digital Corp. stock has a 52-week high of $73.47. Share prices often shift to the upside on recommendations and new price targets of professional analysts.
Yesterday Western Digital Corp. (NASDAQ: WDC) shares last traded at $71.41, a dip of $1.22 over the previous closing price. Opening at $72.95, they ranged from $71.38 and $73.00 throughout the day.
Western Digital Corp. (NASDAQ: WDC) now has a market cap of 20.39B.
Western Digital Corp. (NASDAQ: WDC) Average Daily Trading Volume
789,288 shares traded hands yesterday, 120 percent lower than the average, out of a total float 284,737,000. lower than normal. Look for trading volume to pick up in the coming days as investors often use swings 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 retain substantial teams of analysts that investigate thousands of stocks, so it is good validation to see them buying a stock you are considering.
Western Digital Corp. (NASDAQ: WDC) 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 traders to make those trends work in their favor and increase the number of successful trades.
Trades for Western Digital Corp. (NASDAQ: WDC) have ranged from $34.99 – 73.4700, and the stock now has a 50-day MA of $69.08 and 200-day MA of $56.93. Today’s last price is 2.80%% under the 52 week high of $73.47.
Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors look for companies that have raised their earnings by at least 25% over the past 3 years.
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