Alphabet Inc. (NASDAQ: GOOGL) shares fell on Tuesday January 31 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 DJIA, -0.60% fell 140 points, or 0.7%, to 19,833, with 26 of the 30 blue-chip companies trading lower. Nike, Inc. NKE, -1.10% down 2.4% and Intel Corp. INTC, -1.70% off 1%, were leading losses.
The S&P 500 SPX, -0.33% was off by 10 points, or 0.5%, to 2,270 with seven of the 11 main sectors trading lower. Industrials, consumer-discretionary, and technology shares were the worst performers, while real estate and utilities stocks attracted buyers.
The health-care sector, which was down in early trade, rebounded after President Trump called for scaling back drugmaker’s regulation, lowering taxes and prices of medicines.
The Nasdaq Composite COMP, -0.25% declined 31 points, or 0.6%, to 5,581.
Jefferies Group LLC analysts reiterated its Buy rating on Alphabet Inc. (NASDAQ: GOOGL) in a note to investors, making it one of the more closely watched stocks on Wall Street. With a rating of Buy on the stock, Alphabet Inc. has a 52-week high of $858.79. The one-year price target of $988.47 is higher than the opening price of $820.00, resulting a fair amount of other analysts to issue statements on the stock in recent days. Usually, after analysts assign a “reiterated rating” report on a stock, they will later issue sporadic revisions, such as a price target change.
Shares of Alphabet Inc. (NASDAQ: GOOGL) opened at $820.00 yesterday and traded in a range between, $816.00 and $823.07, and last traded at $820.42, which is a dip of $3.41 over the previous closing price.
Alphabet Inc. (NASDAQ: GOOGL) currently has a market cap of 567.15B.
Alphabet Inc. (NASDAQ: GOOGL) Average Daily Trading Volume
417,134 shares traded hands yesterday, 41 percent below the norm, out of a total float 598,355,000. lower than normal. Look for trading volume to pick up in the coming days as swing traders often use increases in trading volume to identify heavy volume accumulation or distribution by institutional investors.
However, a single day of heavy buy side trading is not enough to assert a trend. As such, market traders will continue to watch for institutional sponsorship as a signal that financial institutions are moving forward.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors have teams of analysts researching thousands of stocks, so it is good validation to see them buying a stock you are considering.
Alphabet Inc. (NASDAQ: GOOGL) 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 successful trades.
Trades for Alphabet Inc. (NASDAQ: GOOGL) have ranged from $672.66 – 858.79, and the stock now has a 50-day MA of $821.78 and 200-day MA of $801.09. Today’s last price is 4.47%% below the 52 week high of $858.79.
Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors identify 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.