Yahoo! Inc. (NASDAQ: YHOO) shares rose 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.
Analysts at SunTrust Banks, Inc. reiterated a Hold rating on shares of Yahoo! Inc. (NASDAQ: YHOO) in a reserach note to investors, making it one of the more actively watched stocks on Wall Street. With a rating of Hold on the stock, Yahoo! Inc. has a 52-week high of $44.92. As a means of comparison, a number of other analysts have issued reports on the company in recent days, and the company has secured a consensus one-year price target of $45.68, above the opening price of $44.11. Typically, after analysts assign a “reiterated rating” report on a stock, they will later issue other revisions, usually followed by a price target change.
Yesterday Yahoo! Inc. (NASDAQ: YHOO) shares last traded at $44.52, which is a jump of $0.62 from the previous closing price. Opening at $44.11, they fluctuated from $44.09 and $44.68 throughout the day.
Yahoo! Inc. (NASDAQ: YHOO) currently has a market cap of 42.48B.
Yahoo! Inc. (NASDAQ: YHOO) Average Daily Trading Volume
The stock’s average daily volume is 9,780,820 shares out of a total float 795,005,000 and some 1,540,235 shares traded hands yesterday, 29 percent below 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 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 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 confirmation to see them taking a postion in a stock you’re considering.
Yahoo! Inc. (NASDAQ: YHOO) 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 investors to make those trends work in their favor and increase the number of winning trades.
With that in mind, Yahoo! Inc. (NASDAQ: YHOO) now has a 50-day MA of $40.60 and 200-day MA of $41.21. It has traded in a 52-week range between $26.15 – 44.92 and today’s last price is 0.89%% lower than the 52 week high of $44.92.
Earnings growth is a critical factor to research when buying stocks and investors seek companies that have raised their earnings at least 25% or more for 3 consecutive years.
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