Cisco Systems, Inc. (NASDAQ: CSCO) 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.
Cisco Systems, Inc. (NASDAQ: CSCO) had its Outperform rating reiterated by equities researchers at William Blair in a research note to investors. The company currently has a rating of Outperform on the shares. As a means of comparison, a number of other analysts have commented on the company recently, and Cisco Systems, Inc. has secured a consensus one-year price target of $33.11, above the opening price of $31.04. Cisco Systems, Inc. stock has a 52-week high of $31.95. Stock prices often trend to the upside on recommendations and new price targets of professional analysts.
Yesterday Cisco Systems, Inc. (NASDAQ: CSCO) shares last traded at $30.77, which represents a spike of $0.17 compared to the previous closing price. Opening at $31.04, they varied from $30.71 and $31.05 throughout the day.
Cisco Systems, Inc. (NASDAQ: CSCO) now has a market cap of 154.46B.
Cisco Systems, Inc. (NASDAQ: CSCO) Average Daily Trading Volume
5,239,286 shares traded hands yesterday, 101 percent below the norm, out of a total float 5,016,445,000. 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.
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 commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors retain teams of analysts researching thousands of stocks. So watching their interests is a good way to make sure you are buying the right stocks.
Cisco Systems, Inc. (NASDAQ: CSCO) 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, Cisco Systems, Inc. (NASDAQ: CSCO) now has a 50-day MA of $30.27 and 200-day MA of $30.64. It has traded in a 52-week range between $22.46 – 31.95 and today’s last price is 3.69%% lower than the 52 week high of $31.95.
Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors seek companies that have raised their earnings by at least 25% over a 3 year period.
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