Vertex Pharmaceuticals Incorporated (NASDAQ: VRTX) shares rose in value on Wednesday January 25 on lower 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 Vetr Inc. upgraded shares of Vertex Pharmaceuticals Incorporated (NASDAQ: VRTX) from Buy to Strong-Buy today. With a rating of Strong-Buy on the stock, Vertex Pharmaceuticals Incorporated has a 52-week high of $103.73. As a means of comparison, a number of other analysts have commented on the stock recently, and the company has secured a consensus one-year price target of $99.20, above the opening price of $82.55. Usually, after analysts issue an upgrade report on a stock, they will later issue periodic revisions, usually followed by a price target change.
Yesterday Vertex Pharmaceuticals Incorporated (NASDAQ: VRTX) shares last traded at $83.39, which represents an increase of $1.15 compared to the previous closing price. Opening at $82.55, they fluctuated from $82.35 and $83.45 throughout the day.
Vertex Pharmaceuticals Incorporated (NASDAQ: VRTX) now has a market cap of 20.68B.
Vertex Pharmaceuticals Incorporated (NASDAQ: VRTX) Average Daily Trading Volume
The stock’s average daily volume is 2,090,830 shares out of a total float 246,867,000 and some 136,913 shares crossed the trading desk yesterday, 14 percent lower than the norm. 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.
While increased trading for one day 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 is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these retain substantial teams of analysts that research thousands of stocks. So watching their interests is a good way to ensure you are buying the right stocks.
Vertex Pharmaceuticals Incorporated (NASDAQ: VRTX) 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 Vertex Pharmaceuticals Incorporated (NASDAQ: VRTX) have ranged from $71.46 – 103.73, and the stock now has a 50-day MA of $78.04 and 200-day MA of $87.19. Today’s last price is 19.61%% under the 52 week high of $103.73.
Earnings growth is a crucial factor to research when buying stocks and investors watch for companies that have grown their earnings by at least 25% over a 3 year period.
DISCLOSURE: The views and opinions expressed in this article do not represent the views of the website. Readers should not consider statements made by the author as formal recommendations and should consult their financial adviser before making any investment decisions. To read our full disclosure, please see our terms and conditions page.