ABB Ltd (NYSE: ABB) shares rose in value on Wednesday January 25 on lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile, the Dow Jones Industrial Average on Wednesday crossed the 20,000 level for the first time, while the S&P 500 and Nasdaq Composite also traded in record territory shortly after the market opened
The Dow Jones Industrial Average DJIA, +0.60% advanced 100 points, or 0.5%, to 20,012,
The S&P 500 index SPX, +0.55% gained 10 points, or 0.5%, to 2,289, with eight of the main 11 sectors trading higher.
The Nasdaq Composite index COMP, +0.66% was 30 points, or 0.6%, higher at 5,630.
All three main indexes set intraday records shortly after the opening bell.
Analysts at RBC Capital Markets upgraded shares of ABB Ltd (NYSE: ABB) from Sector Perform to Outperform today. The company currently has a rating of Outperform on the stock. A number of other analysts have spoken on the stock in recent days, and ABB Ltd has secured a consensus one-year price target of $22.10, a decrease compared to the opening price of $23.41, a difference of 9.42 percent. ABB Ltd stock has a 52-week high of $23.50. Share prices often move to the upside on recommendations and new price targets of professional analysts.
Yesterday ABB Ltd (NYSE: ABB) shares last traded at $23.46, which represents an increase of $0.51 compared to the previous closing price. Opening at $23.41, they fluctuated from $23.39 and $23.50 throughout the day.
ABB Ltd (NYSE: ABB) currently has a market cap of 50.11B.
ABB Ltd (NYSE: ABB) Average Daily Trading Volume
The stock’s average daily volume is 2,155,550 shares out of a total float 1,768,973,000 and some 370,837 shares crossed the trading desk yesterday, 115 percent below the average. lower than normal. Look for trading volume to pick up in the coming days as swing 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, 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.
Institutional investors such as these have substantial teams of analysts that investigate thousands of stocks, so it is good validation to see them buying a stock you are considering.
ABB Ltd (NYSE: ABB) 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 ABB Ltd (NYSE: ABB) have ranged from $16.52 – 23.50, and the stock now has a 50-day MA of $21.56 and 200-day MA of $21.54. Today’s last price is 0.15%% below the 52 week high of $23.50.
Earnings growth is a crucial factor to look at when investing in stocks and investors seek companies that have increased their earnings at least 25% or more over 3 consecutive years.
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