HCP, Inc. (NYSE: HCP) shares fell back in value on Wednesday January 25 on lighter 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 Goldman Sachs Group, Inc. (The) upgraded shares of HCP, Inc. (NYSE: HCP) from Neutral to Buy today. The company currently has a rating of Buy on the stock. A number of other analysts have issued reports on the stock recently, and the company has earned a consensus one-year price target of $30.23, a decrease compared to the opening price of $30.50. HCP, Inc. stock has a 52-week high of $36.82. Share prices sometimes get a spike to the upside when analysts upgrade a stock.
Yesterday HCP, Inc. (NYSE: HCP) shares last traded at $30.04, which represents a decrease of $0.20 from the previous closing price. Opening at $30.50, they ranged from $29.90 and $30.61 throughout the day.
HCP, Inc. (NYSE: HCP) now has a market cap of 14.06B.
HCP, Inc. (NYSE: HCP) Average Daily Trading Volume
705,702 shares traded hands yesterday, 51 percent below the average, out of a total float 466,543,000. lower than normal. Look for trading volume to pick up in the coming days as momentum traders often use increases 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 is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Professional investors such as these retain substantial teams of analysts researching thousands of stocks, so it is good validation to see them buying a stock you’re considering.
HCP, Inc. (NYSE: HCP) 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 winning trades.
Trades for HCP, Inc. (NYSE: HCP) have ranged from $22.87 – 36.82, and the stock now has a 50-day MA of $29.97 and 200-day MA of $32.51. Today’s last price is 18.42%% under the 52 week high of $36.82.
Earnings growth is a critical factor to look at when buying stocks and investors seek companies that have raised their earnings at least 25% or more over a 3 year period.
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