International Paper Company (NYSE: IP) shares rose 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 BMO Capital Markets upgraded shares of International Paper Company (NYSE: IP) from Market Perform to Outperform today. BMO Capital Markets currently has a rating of Outperform on the shares. As a means of comparison, a number of other analysts have spoken on the stock in recent days, and the company has secured a consensus one-year price target of $53.93, less than the opening price of $56.48. International Paper Company stock has a 52-week high of $57.40. Share prices sometimes get a spike to the upside when analysts upgrade a stock.
Yesterday International Paper Company (NYSE: IP) shares last traded at $57.34, a jump of $1.44 from the previous closing price. Opening at $56.48, they varied from $56.46 and $57.40 throughout the day.
International Paper Company (NYSE: IP) now has a market cap of 23.58B.
International Paper Company (NYSE: IP) Average Daily Trading Volume
The stock’s average daily volume is 2,622,830 shares out of a total float 408,380,000 and some 462,546 shares traded hands yesterday, 66 percent lower than the norm. lower than normal. Look for trading volume to pick up in the coming days as investors often use increases 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 commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors retain teams of analysts that investigate thousands of stocks, so it is good validation to see them taking a postion in a stock you’re researching.
International Paper Company (NYSE: IP) 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 International Paper Company (NYSE: IP) have ranged from $32.53 – 57.40, and the stock now has a 50-day MA of $53.62 and 200-day MA of $48.55. Today’s last price is 0.10%% lower than the 52 week high of $57.40.
Earnings growth is a crucial factor to research when buying stocks and investors watch for companies that have grown their earnings at least 25% or more over the past 3 years.
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