Apple Inc. (NASDAQ: AAPL) shares rose on Wednesday January 25 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, 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.
Credit Suisse Group analysts reiterated its Outperform rating on Apple Inc. (NASDAQ: AAPL) in a note to investors, making it one of the more closely watched stocks on Wall Street. Credit Suisse Group currently has a rating of Outperform on the shares. As a means of comparison, a number of other analysts have issued reports on the stock in recent days, and Apple Inc. has secured a consensus one-year price target of $133.40, higher than the opening price of $120.42, a difference of 11.02 percent. Apple Inc. stock has a 52-week high of $121.41. Share prices often shift to the upside on recommendations and new price targets of professional brokerage firms.
Shares of Apple Inc. (NASDAQ: AAPL) opened at $120.42 yesterday and traded in a range between, $120.28 and $121.41, and last traded at $121.09, which represents a jump of $1.12 from the previous closing price.
Apple Inc. (NASDAQ: AAPL) now has a market cap of 645.69B.
Apple Inc. (NASDAQ: AAPL) Average Daily Trading Volume
6,595,018 shares traded hands yesterday, 4 percent below the average, out of a total float 5,313,116,000. 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, 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 instituitional investors retain substantial teams of analysts that investigate thousands of stocks, so it is good confirmation to see them taking a postion in a stock you’re researching.
Apple Inc. (NASDAQ: AAPL) 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 spotting trends, moving averages allow traders to make those trends work in their favor and increase the number of successful trades.
With that in mind, Apple Inc. (NASDAQ: AAPL) now has a 50-day MA of $116.82 and 200-day MA of $111.12. It has traded in a 52-week range between $89.47 – 121.41 and today’s last price is 0.26%% lower than the 52 week high of $121.41.
Earnings growth is a crucial factor to look at when investing in stocks and investors watch for companies that have raised their earnings by at least 25% for a 3 year period.
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