Seagate Technology PLC (NASDAQ: STX) shares rose on Wednesday January 25 on heavier 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.
Needham & Company LLC analysts reiterated its Strong-Buy rating on Seagate Technology PLC (NASDAQ: STX) in a note to investors, making it one of the more closely watched stocks on Wall Street. The company currently has a rating of Strong-Buy on the stock. The one-year price target of $39.92 is a decrease compared to the opening price of $42.45, resulting a fair amount of other analysts to comment on the stock recently. Looking back over the last 52 weeks, Seagate Technology PLC stock has a high of $46.68. Share prices sometimes get a boost to the upside when analysts reiterate coverage.
Yesterday Seagate Technology PLC (NASDAQ: STX) shares last traded at $46.15, which is an increase of $8.71 from the previous closing price. Opening at $42.45, they fluctuated from $42.16 and $46.68 throughout the day.
Seagate Technology PLC (NASDAQ: STX) now has a market cap of 13.59B.
Seagate Technology PLC (NASDAQ: STX) Average Daily Trading Volume
12,575,683 shares traded hands yesterday, 82 percent higher than normal, out of a total float 291,601,000. higher than normal. Significant increases in trading volume and price appreciation together could signal heavy volume accumulation 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 just refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors retain substantial teams of analysts researching thousands of stocks, so it is good validation to see them buying a stock you’re considering.
Seagate Technology PLC (NASDAQ: STX) 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 Seagate Technology PLC (NASDAQ: STX) have ranged from $18.42 – 46.68, and the stock now has a 50-day MA of $38.49 and 200-day MA of $35.58. Today’s last price is 1.14%% under the 52 week high of $46.68.
Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors seek companies that have grown their earnings at least 25% or more over 3 consecutive years.
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