Verizon Communications Inc. (NYSE: VZ) shares fell 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.
Raymond James Financial, Inc. analysts reiterated its Market Perform rating on Verizon Communications Inc. (NYSE: VZ) in a note to investors, making it one of the more closely watched stocks on Wall Street. With a rating of Market Perform on the shares, Verizon Communications Inc. has a 52-week high of $56.95. A number of other analysts have spoken on the company in recent days, and Verizon Communications Inc. has earned a consensus one-year price target of $53.68, higher than the opening price of $49.51, a difference of 10.86 percent. Share prices often move to the upside on recommendations and new price targets of professional analysts.
Shares of Verizon Communications Inc. (NYSE: VZ) opened at $49.51 yesterday and traded in a range between, $48.84 and $49.66, and last traded at $49.42, which is a dip of $0.70 from the previous closing price.
Verizon Communications Inc. (NYSE: VZ) now has a market cap of 201.47B.
Verizon Communications Inc. (NYSE: VZ) Average Daily Trading Volume
7,797,820 shares crossed the trading desk yesterday, 112 percent lower than the norm, out of a total float 4,060,368,000. lower than normal. Look for trading volume to pick up in the coming days as swing traders often use upticks 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.
These instituitional investors have substantial teams of analysts researching thousands of stocks, so it is good validation to see them taking a postion in a stock you are researching.
Verizon Communications Inc. (NYSE: VZ) 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, Verizon Communications Inc. (NYSE: VZ) now has a 50-day MA of $52.65 and 200-day MA of $51.80. It has traded in a 52-week range between $46.01 – 56.9500 and today’s last price is 13.22%% lower than the 52 week high of $56.95.
Earnings growth is a crucial factor to research when buying stocks and investors look for companies that have grown their earnings by at least 25% over the past 3 years.
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